Should the market movement be different from the investor's expectations and fall from RM9 to RM8, the loss would be RM2 for every RM1 fall in the share price. The investor must still bear the interest rate charges on the entire amount borrowed. Interest rate charges on share margin financing are usually the base lending rate plus 3%. Some brokers even charge rollover fees of 1% on the entire margin loan, every 90 days.

Should the value of the investor's equity fall to less than 150% of the margin deposit and loan, the investor will receive a margin call. Normally an investor will have three days to top up his funds to 150% or more. If the investor ignores the call, the institution will force-sell part of the holding to bring the account back into balance.

Should the share continue to fall, additional margin calls will be made. If the investor ignores the margin calls there will be more forced-selling. The investor's collateral gets smaller with each drop in the market. Please do not ignore margin calls as amargin call is the market's way of shouting to you, telling you that you are wrong. Please listen or suffer the consequences, which could be a terrible financial disaster.