Margin Call

What does it Mean? A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin.

This is sometimes called a "fed call" or "maintenance call".
 
Investopedia Says... You would receive a margin call from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. You would be forced either to deposit more money in the account or to sell off some of your assets.


Terms Related Links

Broker's Call
Buying Power
Call Loan
Call Loan Rate
Federal Reserve Board - FRB
Initial Margin
Leverage
Maintenance Margin
Margin
Margin Account
Market Value
Remargining

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What is a margin account?

What are the minimum margin requirements for a short sale account?

My broker just sold securities out of my account without my permission. Is this legal?

What does it mean when the shares in my account have been liquidated?

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