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For long stock positions, you need to have enough cash to cover the purchase or else You will be issued a margin8 call, which you must meet by adding funds to your account. But that timeline might be short, as well as broker, at its discretion, has the right to liquidate positions in your account to meet a margin call9. If exercise or assignment includes taking a short stock position, you need a margin account and enough funds from the account to cover the margin requirement.

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