margin call
Collateral replenishment notice
A margin call is a broker's demand that an investor deposit additional funds or securities to cover losses in a margin account—one where the investor borrowed money to buy securities.
When investments decline below a required threshold, the broker issues a margin call: He got a margin call and had to liquidate his position.
Failure to meet a margin call typically results in forced sale of holdings.
Transaction-facilitating service
- collateralSecurity for debt
- minimum balanceLeast funds needed
- depositPlace for safekeeping
- shortfallFailure to reach quota
threshold · trigger · notification · demand · compliance · top-up · cash injection · clearing house
Mandatory transfer of property
- selloffMass asset liquidation
- asset seizureLegal taking of property
- market orderInstant execution trade request
- fire saleUrgent, deep-discount liquidation
Money owed another
- borrowingTemporary taking of another's
- gearingInterlocking toothed wheels
- overleveragedExcessively burdened by debt
- loan-to-valueDebt-to-collateral ratio
State of being unprotected
- volatilityRapid, unpredictable changeability
- downsideDisadvantage of something
- underwaterBelow the surface
- negative equityOwing more than owned
Time limit for completion
- time-sensitiveRequiring prompt action
- immediateHappening without delay
- criticalExpressing disapproval or importance
- pressureForce upon contact
same-day · intraday · escalation · final notice · last resort · emergency funds
brokerage
Transaction-facilitating service
- collateralSecurity for debt
- minimum balanceLeast funds needed
- depositPlace for safekeeping
shortfall · threshold · trigger · notification · demand · compliance · top-up · cash injection · clearing house · broker-dealer
forced sale
Mandatory transfer of property
- selloffMass asset liquidation
- asset seizureLegal taking of property
- market orderInstant execution trade request
debt
Money owed another
- borrowingTemporary taking of another's
- gearingInterlocking toothed wheels
- overleveragedExcessively burdened by debt
loan-to-value · buying power · financial leverage · debit balance
exposure
State of being unprotected
- volatilityRapid, unpredictable changeability
- downsideDisadvantage of something
- underwaterBelow the surface
negative equity · market risk · systemic risk · contagion · drawdown
deadline
Time limit for completion
- time-sensitiveRequiring prompt action
- immediateHappening without delay
- criticalExpressing disapproval or importance
pressure · same-day · intraday · escalation · final notice · last resort · emergency funds
- Wall Streetstock market, bond market, stocks, shares, Wall Street
- stock marketstock, shares, stocks, trading, stock market
- Depression EraGreat Depression, Hooverville, breadline, dust storms, soup kitchen
- financial eventsmerger, acquisition, IPO, bankruptcy, takeover
- financial risksbad debt, credit risk, insolvency, market crash, volatility
- investment pitfallsovertrading, panic selling, overleveraging, overconfidence, poor timing
margin callwindfall
Unanticipated lucky gain
profit taking · dividend payment · capital gains · portfolio growth · investment return
call, margin, marginal, margins, marginalize, marginally, marginality, marginalia, marginalized