RE:Margin call effect..tarzanof wrote: Even if sp closed at 2.00 yesterday, bid and ask were at 1.99 which automatically triggered the margin call. This is the rule at National Bank and may be other banks. Most investors think that it is the closing price which is the decisive factor but it is the bid and ask prices. so the selling is going on and the sp will rebounce when all the margins will have been reembursed. For those trapped , you have no choice than to sell Pli or something else, invest new money to cover the margin....and rebuy at 2.00....
At BMO, they pulled the margin like 2 months ago when PLI was at 2,20. It surprises me that other banks or brokers did not pull the trigger before today.