Margin calls are more likely to happen when markets are:

Question

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Margin calls typically occur when the value of an investor's margin account falls below a certain level, known as the maintenance margin. During a market crash, stock prices can drop rapidly, causing the value of margin accounts to decline quickly. This makes it more likely that investors will receive margin calls, as their accounts may no longer meet the maintenance margin requirements.

Margin Calls Are More Likely to Happen When Markets Are