What happens in a margin call situation?
You will receive notification if your client’s loan reaches a margin call. At this point, your client must take action to reduce the loan-to-value ratio. They have a couple of options to remedy the situation: they may either provide B2B Trust with additional mutual fund collateral, or they can pay down the loan balance by sending a cheque payable to B2B Trust.
Related Questions
- What happens if a client is margin called? How much time are clients allowed to meet the margin call before positions are liquidated?
- What happens if the limit is insufficient to meet a margin call but there are unallocated clear funds available in the bank account?
- What happens in a margin call situation?
