Call Money Rate

Filed Under » , ,
Dictionary Says

Definition of 'Call Money Rate'

The interest rate on a type of short-term loan that banks give to brokers who in turn lend the money to investors to fund margin accounts. For both brokers and investors, this type of loan does not have a set repayment schedule and must be repaid on demand.

Investopedia Says

Investopedia explains 'Call Money Rate'

Trading on margin is a risky strategy in which investors make trades with borrowed money. The advantage of margin trading is that investment gains are magnified; the disadvantage is that losses are also magnified. When investors trading on margin experience a decline in equity past a certain level relative to the amount they have borrowed, the brokerage will issue a margin call that requires them to deposit more cash in their account or to sell enough securities to make up the shortfall.
Search results for

'Call Money Rate'

  • Bond Call Features: Don't Get Caught Off Guard

    http://www.investopedia.com/articles/bonds/05/052305.asp
    ... this may make callable bonds more attractive, call provisions can ... is called, you
    could still end up losing money. ... reinvest the cash at a similar rate of return ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Call and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/call-prepayment-risk.asp
    ... Goals and Targets of the US Federal Reserve; 4.18 Money, Interest, Real ... Investors
    and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ...

  • CFA Level 1 Study Guide - Derivatives - Effect of Cash Flows on ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/effect-cash-flows-put-call-parity-lower-bounds.asp
    ... Goals and Targets of the US Federal Reserve; 4.18 Money, Interest, Real ... Investors
    and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ...

  • CFA Level 1 Study Guide - Derivatives - Put-Call Parity ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/put-call-parity.asp
    ... Goals and Targets of the US Federal Reserve; 4.18 Money, Interest, Real ... Investors
    and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ...

  • Managing Interest Rate Risk

    http://www.investopedia.com/articles/optioninvestor/08/manage-interest-rate-risk.asp
    ... is considered the mirror image of a call option, the ... all provide ways to hedge interest
    rate risk, with ... one gives up something - either money (premiums paid ...

  • An Alternative Covered Call: Adding A Leg

    http://www.investopedia.com/articles/optioninvestor/06/AddLegCoveredCall.asp
    ... protective put at $2.05, which has a slower rate of time ... 25 put will be much closer
    to the money and will ... not so much lower that the covered call strategy gets ...

  • CFA Level 1 Study Guide - Macroeconomics - Money, Interest, Real ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/supply-demand-money.asp
    ... Goals and Targets of the US Federal Reserve; 4.18 Money, Interest, Real ... Investors
    and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ...

  • CFA Level 1 Study Guide - Quantitative Methods - What Is The Time ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/time-value-money.asp
    ... Goals and Targets of the US Federal Reserve; 4.18 Money, Interest, Real ... Investors
    and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ...

  • Compound Annual Growth Rate (CAGR)

    http://www.investopedia.com/video/play/compound-annual-growth-rate
    ... Next video: Call Option Basics. The compound annual growth rate is an ... Call options
    offer investors a way to leverage their capital for ... In The Money Options. ...

  • Covered Call Strategies For A Falling Market

    http://www.investopedia.com/articles/08/covered-call-strategy.asp
    ... the intrinsic value; the interest rate; the amount of time ... is to minimize time decay,
    the LEAPS call option is generally purchased deep in the money, and this ...

Related Articles

Trading Center
Partner Links