Margin CallsFor those fearful at these current low prices. Keep one thing in mind. Years ago I traded and used margin at a brokerage to buy 100% more stock than I had cash for. When my largest holding "cooked the books" things turned south quickly. Thats when I learned about margin calls where the brokerage damanded money or stock sales to cover the stock drop. They also changed the margin requirements which accelerated the sales. Within 7 trading days I lost EVERYTHING.
I had read lately that margin purchases were at an all time high. If those on margin havent sold by today to cover they will within the next few days. When it happened to me I had to sell ALL of my holding the good and the bad. Those on high margin WILL be flushed out soon.