Do you think I should answer my Margin Call?

I bought 280 shares USO(oil etf) at $50, now USO is at $32, when it goes below $30 I will get my first margin call, should I answer the call and deposit more funds or decline and let the broker sell off some of my shares to cover their loss?|||I would deposit more funds. Oil can't keep going down forever. With the enormous populations of developing countries who will be demanding cars and a higher standard of living over the next 5-10 years, it wouldn't surprise me to see $150 oil within the next 5 years. This means a quadruple for USO from its current valuation.





Buying high and selling low is never a good way to make money.|||USO is going to drop like a rock. You should sell out now and then buy back in around $26. You are looking at a current $5,000 loss. If you sale now and buy back in at $26 with your remaining $9,000, USO needs only to reach around $38 for you to be back to even.





Additionally NYMEX Crude is very unlikely to go higher than $70-$110 over the next 18 months with a likely trading range of $20 to $60 during the majority of that time. $65-$85 a barrel is the ideal trading range for oil right now. In about 36 months we could see a sharp break to the $300 per barrel range but that is becoming much less likely.|||meeting a margin call is generally a very bad idea. It normally is best to take your loss and walk away. What generally happens with someone who meets a margin call is that the stock keeps falling and then he gets a 2nd margin call. He figures he already has invested so much into the stock that he must invest more to protect his investment. And then there is a 3rd call.





The market is running against you. Bail out.|||If you have the nerve (and the capital) i'd stick with meeting margin calls. OPEC wants to cut supply to increase prices and Irans government expenidture is based on 70$ oil (so it's beneficial for them to at least get that high).





This recession won't last forever and oil is not an infinite resource. Hold on if you can





Oh, and don't listen to the people who are telling you to sell when prices are low (and not wait until they're high again). My guess is they're not going to be the next Warren Buffet.





Best of luck to you!|||Forget about your broker covering his losses - that's his problem. You certainly do not want to sell unless you need the cash yourself.. If you can afford to invest, and are saving for the long term, then it's probably a good plan. It won't be a quick return, but in 2 years+, things should look better.|||"Buy and hope" is not a strategy. USO has lost almost half its value. This means that the decision to buy it was a mistake. You can't make money investing in things that are going down.|||You should sell it all and get into something else.|||wat???? ??? ??????? ok yes u should take it.....but is this about butter??