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Margin Call
(redirected from margin calls)

    Also found in: Dictionary/thesaurus, Financial 0.03 sec.

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.
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? References in periodicals archive
The old crop wheat bulls have the bears right where they want them: on big margin calls and scared to sell.
Are the wheat bulls are in a full fledged rampage? by Utterback, Bob / Farm Journal
If you sell futures into a bull market, the margin calls stack up quickly.
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As WorldCom began to show signs of financial difficulty, the debtor's stockbroker sold his shares as they decreased in value to meet margin calls.
Bankruptcy and OICs by Laffie, Lesli S. / The Tax Adviser
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