Call Loan

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DEFINITION of 'Call Loan'

A loan provided to a brokerage firm and used to finance margin accounts. The interest rate on a call loan is calculated daily. The resulting interest rate is referred to as the call loan rate.

BREAKING DOWN 'Call Loan'

Call loans use securities as collateral for the loan. It is important to note that a call loan can be canceled at any time.

RELATED TERMS
  1. Call Loan Rate

    The short term interest rate charged by banks on loans extended ...
  2. Margin

    1. Borrowed money that is used to purchase securities. This practice ...
  3. Loan

    The act of giving money, property or other material goods to ...
  4. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  5. Initial Margin

    The percentage of the purchase price of securities (that can ...
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    1. The dollar amount in an existing margin account that is currently ...
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RELATED FAQS
  1. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
  2. How does a broker decide which customers are eligible to open a margin account?

    Brokers have the sole discretion to determine which customers may open margin accounts with them, although there are regulations ... Read Full Answer >>
  3. Are there leveraged ETFs that follow the retail sector?

    There are many exchange-traded funds (ETFs) that track the retail sector or elements of the retail sector, and some of those ... Read Full Answer >>
  4. What is the interest rate offered on a typical margin account?

    Interest rates on margin accounts vary according to the size of the loan and the brokerage firm being used. Generally, interest ... Read Full Answer >>
  5. What are some common cash-debt strategies that occur during a spinoff?

    Cash-debt strategies that are commonly used to in a spinoff to enable the parent company to monetize the spinoff are debt/equity ... Read Full Answer >>
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    The savings and loan crisis and the subprime mortgage crisis both began with banks creating new profit centers following ... Read Full Answer >>

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