Call Loan

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Dictionary Says

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.
Investopedia Says

Investopedia explains '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 Definitions

  • Call Loan Rate

    The short term interest rate charged on a secured call loan, usually in margin accounts.Also known as the broker's call.
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  • Interest Rate

    The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual ...
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  • Loan

    The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan ...
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    • Margin

      1. Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin". 2. The amount of equity contributed by a customer as a percentage of the ...
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    • Margin Loan Availability

      1. The dollar amount in an existing margin account that is currently available for purchasing securities. For new accounts, this represents the percentage value of the current balance ...
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