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Market Corrections: The Margin Call Guard
Understand that a 50% market crash might require you to add more units or pay down the loan balance.
Transparency is essential when borrowing against investments. If the portfolio value falls and breaches the safety threshold, lenders may ask for additional collateral or partial repayment to restore the loan to value ratio. However,historical data suggests that maintaining a 50% LTV level provides a strong buffer even during major market corrections, encouraging disciplined borrowing and preventing excessive leverage during periods of market volatility.Apply Now