Margin Call
/ˈmɑːrdʒɪn kɔːl/
Definitions
- (n.) A demand by a broker or lender for the investor to deposit additional funds or securities to cover potential losses.
The trader received a margin call after the market value of his stock holdings dropped significantly.
Forms
- margin calls
See also
Commentary
Margin calls are critical risk management tools in securities trading, reflecting the broker's right to protect credit exposure by requiring additional collateral.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.