The requirement to add money and increase an equity position to a minimum level is best described as a(n):
A) margin call.
B) initial margin.
C) open interest.
D) notional amount.
E) maintenance margin.

Question

Quizplus · Accepted Answer

A margin call occurs when the equity in a margin account falls below the maintenance margin requirement, prompting the investor to add funds to bring the equity back to the required level.

The Requirement to Add Money and Increase an Equity Position