Margin Call


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Margin Call

A demand by a Broker that an investor who has purchased Securities using credit extended by the broker (on margin) pay additional cash into his or her brokerage account to reduce the amount of debt owed.

A broker makes a margin call when the stocks in the account of the client have fallen below a particular percentage of their market price at the time of purchase, thereby increasing the outstanding debt and the broker's liability should the client become unable to pay. This process is also known as remargining.

A broker might also make a margin call when a client desires to make additional purchases of stock and securities.

References in periodicals archive ?
A 25 per cent drop on the Dubai index from December 1 through December 17 triggered a lot of margin calls by brokers, which aggravated the selling pressure on the UAE markets.
In the High Court, a judge ruled that Deutsche Bank was not in breach of contract and that Sebastian Holdings would have to pay the financial [pounds sterling]146m (E174m, $235m) in compensation for unpaid margin calls from 2008 to the group.
one of the major problems of selling options is the position can deteriorate very rapidly and margin calls can come thick and fast.
All this happened due to a margin call pressure and NBFCs started dumping the shares.
In an age where cinema owes more to special effects than intelligence, Margin Call is an outstanding exception.
And Margin Call doesn't get bogged down by the detail, with the expression 'Just explain it to me in English' used more than once.
But with the employment market such as it is, it's remarkable how 'of its time' Margin Call feels.
Margin Call hits US cinemas on October 21 and is expected to coincide with the current Wall Street protests.
Given the growth and complexity of the derivatives collateral management process, it is imperative we provide clients with a clear, real-time window into reviewing and approving their collateral agreements, margin calls and settlements.
But when tech shares and other highfliers dropped significantly, most notably this April, several investors suffered margin calls.
Based on gold prices of around $325 per ounce, Ashanti owed around $270m to its bankers in margin calls and other cash deposits.
The investor can anticipate a margin call at: [(1 - .