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Margin Call

Financial term in the Investing category

Definition

A broker's demand for additional funds when a margin account falls below the required minimum value. If not met, the broker can sell securities to cover the shortfall.

Related Terms

Margin

Borrowed money from a broker to purchase securities. Amplifies both gains and losses. Requires a margin account and maintaining minimum equity levels to avoid margin calls.

Frequently Asked Questions

What is Margin Call?

A broker's demand for additional funds when a margin account falls below the required minimum value. If not met, the broker can sell securities to cover the shortfall.

Why is Margin Call important in personal finance?

Margin Call is an important investing concept that helps individuals make better financial decisions. Understanding Margin Call can improve your financial planning and help you achieve your money goals.

How does Margin Call relate to Margin?

Margin Call and Margin are related financial concepts. Borrowed money from a broker to purchase securities. Amplifies both gains and losses. Requires a margin account and maintaining minimum equity levels to avoid margin calls.

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