Federal Call

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Dictionary Says

Definition of 'Federal Call'

A special type of margin call requiring a trader to deposit sufficient cash in order to meet federal requirements on the amount of credit that brokers may extend. These margin requirements are set by Regulation T of the Code of Federal Regulations, Title 12 - Banks and Banking. Currently the margin requirements are 50% for equities. For short sales, the margin requirement is between 100% and 150% of the current market value of the security being sold short. Regulatory authorities has the power to change these margin requirements as they deem necessary.
Investopedia Says

Investopedia explains 'Federal Call'

The purpose of Regulation T and federal calls are to moderate the amount of financial risk present in the securities markets. Since using margin amplifies both gains and losses relative to the initial investment, a broad overuse of margin has the potential to cause instability in financial markets as a whole. Since disruptions in the financial markets can interfere with the broader economy, regulators wish to have the controls necessary to promote orderly market functioning.  
Search results for

'Federal Call'

  • Margin Trading: The Dreaded Margin Call | Investopedia

    http://www.investopedia.com/university/margin/margin2.asp
    ... Individual brokerages can have stricter limits, but the Federal Reserve Board sets
    a ... falls below the maintenance margin, the brokerage will issue a "margin call ...

  • CFA Level 1 Study Guide - Macroeconomics - Money, Banks, and the ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/money-banks-federal-reserve.asp
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

  • CFA Level 1 Study Guide - Macroeconomics - Goals and Targets of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/goals-targets-federal-reserve.asp
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Federal ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/federal-issues.asp
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

  • Identity Theft: Who To Call For Help

    http://www.investopedia.com/articles/pf/05/060105.asp
    Identity Theft: Who To Call For Help. ... You should also contact the Federal Communications
    Commission at 1-888-CALLFCC and alert them to your identity theft. ...

  • 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
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

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

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/put-call-parity.asp
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

  • 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
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

  • CFA Level 1 Study Guide - Derivatives - Managing Risk with Options ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/managing-risk-options-strategies-long-short-call-put-positions.asp
    ... and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and Prepayment ... 14.23
    Mortgage-Backed Securities (MBS); 14.24 Federal Issues; 14.25 Bondholder's Rights ...

  • Series 7 Study Guide - Derivatives - Graphical Interpretations for ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/long-call-graph.asp
    ... 9.20 Monetarist Theory; 9.21 The Federal Reserve Board; 9.22 International
    Economic Factors. 10. ... Let's look at a typical long call. ...

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