Remargining

You buy $100,000 worth of shares of Titanic Insurance Limited. You spent $50,000 of your own money and $50,000 that you borrowed on margin. You are required to maintain a minimum of $50,000 to cover any potential margin call.

Unfortunately, the stock sinks. It sinks bad. Your shares are now worth just $40,000...less than the minimum margin requirement.

Time for a little remargining.

The process involves providing more cash (or contributing more stock) in order to get your account above the minimum level. So you move $15,000 from your savings account, bringing your total up to $55,000...above the required floor.