Quote:
Originally Posted by Slava
^ Well the collateral are the securities that you are investing in. You can't sell the securities and take the money out; the banks get their money first. Also if you do lose the money in the market you're still on the hook for it. Its no different than if your home is now worth $200k with a $350k mortgage on it really.
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Except they usually won't margin call your house. The bank really doesn't want to end up owning a ton of houses to deal with. As long as you make your mortgage payments.
Not sure how a margin call works for trading though.