What is a margin call?

A margin call is triggered when:
  • your Current LVR exceeds the Margin Call LVR; or
  • your Current LVR exceeds the Maximum Gearing Ratio

Remember,

  • Current LVR is your current gearing level. It's calculated by dividing your loan balance by the market value of any securities held on your margin loan (excluding securities with 0% LVR).
  • Base LVR is the maximum gearing level that your portfolio can reach before it would be in buffer.
  • Margin Call LVR is equal to the Base LVR plus the buffer amount of 5%.
  • Maximum Gearing Ratio is listed on the Approved Securities List.
When your account is in margin call

You must immediately adjust your gearing level so that it is below the lower of Base LVR, or the Maximum Gearing Ratio.

 

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