Well, the fact is, when you get the call it will be too late. You will most likely be forced to sell your stocks at significant loss. Although much of the margin increase has been driven by day traders and sophisticated investors, there are more and more people that use margin to buy securities. Opening a margin account is often as simple as checking a box on the brokerage account application form. The fact that people have access to margin makes them use it, whether it is for stock purchases or any other purchase.
Many consumers see it as a great way to pay off their credit card debt.
After all, margin interest rates run way below the national average for credit card debt rates. What many beginning investors forget are the many rules, regulations and policies around margin debt. However, when you look across the spectrum of online brokers it becomes clear that policies for making margin calls are hardly uniform. Before you ever trade on margin read the fine print and policies of your broker. After that use margin wisely.