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Margin calls are used when you want more cash available for when the value of a stock spikes. When a stock makes a dramatic decline, you might have to pay more cash or stock to cover the losses involved. Meanwhile, you might be asked to repay the broker if the price has a huge positive spike. This is to allow the broker to have the funds on hand for managing the trade on short notice.
The total value of a margin call should be around 10 to 20 percent of the total investment. This does not mean that a margin call is absolutely going to occur. The best strategy to use here is to watch for how the stock has been moving and to look at any cases where the stock has experienced dramatic drops in its value.
