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<p>[QUOTE=&quot;desertgem, post: 1238443, member: 15199&quot;]I think that the author of the article was confused between &quot;margin requirement&quot; and &quot;margin calls&quot;. I heard all afternoon that margin calls were occurring, but nothing about margin requirements changing. Margin requirements reflect the value of the underlying security. Thus when the value of your holdings in a margin account, stocks, commodities,ETFs, etc. drop like they did today, you have to reduce your holding level to match the margin you have. If you still hold onto the stocks, commodities, etc. there is a <b>margin call </b>for cash in the account to make up the difference. The margin requirement didn&#039;t change.</p><p><br /></p><p>&nbsp; As in the above scenario, say your account is the same dollar level, and they raise the <b>margin requirement</b>, you either come up with the additional cash to cover the % raise, or enough of your account is liquidated to cash to cover the new amount. The market may be stable.</p><p><br /></p><p>Receiving a margin call is just the result of one&#039;s personal level of aggressive investment and is their fault under the market conditions, and comes from their broker ( someone said Interactive Brokers&nbsp; were caught badly and had to issue a large number of margin calls~ I guess they had a high ratio of aggressive holders.</p><p><br /></p><p>Margin requirements such as with PM comes from the exchanges like CME to protect themselves from unequal call/put ratios.</p><p><br /></p><p>But in the end , they cause holdings to require more cash to be injected into the account, either by cash transfers , or by selling of stock in your account. So it is not good either way if you are long, and are in a margin account.</p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

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