Running discussion on SP, page-56243

Nailed it.
Would just add to your scenario.
imagine that holder, 1m shares at 50c and 10% margin.
Share gaps down to say 40c. They now owe $200k. The trade will be closed and emails and nice phone calls follow.
There is no bull.......ng the $200k.
It will be paid and they have the legal right to take your house, car whaever. And they do sometimes.
BTW if the stock is 70c one week later it matters not.
You are not in the trade.