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A margin call can happen for two main reasons:
1. Share price drop
• If the value of your shares (the collateral) falls below the broker’s required maintenance margin, you may get a margin call.
• Example: You borrow money to buy shares, and the stock falls → your equity shrinks → margin ratio drops → broker asks you to top up.
2. Bad QR (Quarterly Results)
• A bad earnings report doesn’t directly trigger a margin call.
• But if the market reacts negatively and the share price falls, that is what can cause the margin call.