margin call

Margin Call

A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin. This is sometimes called a "fed call."

Notes:

You would receive a margin call from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. You would be forced either to deposit more money in the account or sell off some of your assets.

See also: Broker's Call, Buying Power, Call Loan, Call Loan Rate, Equity, Federal Reserve Board, Initial Margin, Leverage, Maintenance Margin, Margin, Margin Account, Market Value

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Margin call

A demand for additional funds because of adverse price movement. Maintenance margin requirement, security deposit maintenance.

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margin call

A call for additional funds or securities in a margin account either because the value of equity in the account has fallen below a required minimum (also termed a maintenance call) or because additional securities have been purchased (or sold short).