In the event of a margin call, the investor may need to do what to maintain the position?

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In the context of a margin call, transferring additional funds to the account is crucial for maintaining the position. A margin call occurs when the equity in an investor's margin account falls below the required minimum, often due to a decline in the value of the assets bought on margin. This situation necessitates that the investor either deposit more funds or securities into the account to bring the equity back up to the required level. By transferring additional funds, the investor can avoid liquidating their position or facing more severe financial consequences, such as forced liquidation of assets by the broker.

In this instance, selling other investments or borrowing more to cover the margin may not effectively resolve the issue of insufficient equity in the margin account or may even complicate the investor's financial situation. Closing the position immediately is typically a last resort, as it may result in losses that the investor would prefer to avoid. Hence, the most appropriate action to directly address a margin call and maintain the position is to transfer additional funds to the account.

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