margin calls
Collateral shortage alerts
A margin call is a broker's demand that an investor deposit additional money or securities to cover potential losses.
When investments bought on borrowed money decline in value, the broker requires more collateral to maintain the loan: He couldn't meet the margin call and had to sell at a loss.
Margin calls can force rapid liquidation, amplifying market downturns.
- hedgingNoncommittal maneuvering
- clearinghousesInstitutions settling mutual claims
- securitiesTradeable financial assets
- leverageBorrowed capital for amplified returns
- tradingExchanging for value
speculation · options · forced · liquidity · squeeze · futures contracts · collateral · investment · assets · equity · short selling · Black Monday · market meltdown · brokerage · positions · derivatives · portfolio · account
- Wall Streetstock market, bond market, stocks, shares, Wall Street
- Brokeragesstockbrokers, brokers, securities, commissions, brokerage fees
- investment pitfallsovertrading, panic selling, overleveraging, overconfidence, poor timing
- Commodity Futuresfutures market, futures exchange, hedging, delivery dates, spot price
- securities operationsclearing, settlement, matching, execution, back office
- leverageleverage, financial leverage, gearing, debt financing, borrowing
call, margin, marginal, margins, marginalize, margined, marginality, marginalia, marginalized