noun Internet Slang

margin call

MAR-jin KAWL · noun · informal

A broker's demand for more funds when account equity falls too low.

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Definitions

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A margin call is a broker's demand that a trader deposit additional cash or securities when the value of a margined account falls below the required maintenance level. Failing to meet it can force liquidation of positions.

“The stock gapped against him and he got a margin call before the open.”
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margin call In A Sentence

The stock gapped against him and he got a margin call before the open.

Origin & Usage

Refers to the broker 'calling' for more margin (collateral).

Tags #finance#stocks#wsb#leverage#risk

People Also Ask

What is a margin call?

It's a broker's demand that you deposit more cash or securities because the value of your margined account has fallen below the required maintenance level.

What happens if you can't meet a margin call?

The broker can forcibly sell, or liquidate, positions in your account to bring the equity back up to the required level.

What triggers a margin call?

A drop in the value of the securities you bought on borrowed money, which pushes your account equity below the maintenance requirement.

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