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margin call
What does margin call mean?
A margin call is a broker's demand that a trader deposit additional cash or securities when the value of a margined account falls below the required maintenance level. Failing to meet it can force liquidation of positions.
"The stock gapped against him and he got a margin call before the open."
Origin
Refers to the broker 'calling' for more margin (collateral).
Frequently asked questions
What is a margin call?
It's a broker's demand that you deposit more cash or securities because the value of your margined account has fallen below the required maintenance level.
What happens if you can't meet a margin call?
The broker can forcibly sell, or liquidate, positions in your account to bring the equity back up to the required level.
What triggers a margin call?
A drop in the value of the securities you bought on borrowed money, which pushes your account equity below the maintenance requirement.
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