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» A margin call means your broker is asking you to repay the money it lent you to buy stocks - and if you don't, it could mean big losses for your portfolio A margin call means your broker is asking you to repay the money it lent you to buy stocks - and if you don't, it could mean big losses for your portfolio Clint ProctorJan 22, 2021, 05:47 IST If you can't promptly meet a margin call by adding funds to your investment account, your broker has the right to sell some of your securities.boonchai wedmakawand/Getty Images A margin call occurs when a broker demands repayment of some of the mo...

Margin trading increases your buying power and amplifies profits.  But the possibility of encountering a margin call is the big "catch" of margin trading. Basically, it's a request by your broker to pay back some of the money you borrowed — pronto. If you don't, the broker can seize some of your portfolio's assets and sell them.  Before you begin using margin, you need to understand what margin calls are and why they can be so dangerous to your portfolio — and your finances.  How does margin trading work? But before we get into margin calls, a brief explanation of margin trading itself...