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.

mechanism

brokerage

Transaction-facilitating service

shortfall · threshold · trigger · notification · demand · compliance · top-up · cash injection · clearing house · broker-dealer

liquidation

forced sale

Mandatory transfer of property

fire sale · unwinding · closeout

leverage

debt

Money owed another

loan-to-value · buying power · financial leverage · debit balance

risk

exposure

State of being unprotected

negative equity · market risk · systemic risk · contagion · drawdown

urgency

deadline

Time limit for completion

pressure · same-day · intraday · escalation · final notice · last resort · emergency funds

Categories
Opposites
account status

margin callovercollateralized

Backed by surplus assets

cash flow direction

margin callwindfall

Unanticipated lucky gain

profit taking · dividend payment · capital gains · portfolio growth · investment return

market position outcome

margin callprofit taking

Selling appreciated assets

Family

call, margin, marginal, margins, marginalize, marginally, marginality, marginalia, marginalized

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Negative · Rated G