broker loan rate

broker loan rate definition - finance
An interest rate charged to brokers who need funds to cover the margin loans that they have extended to their customers. These loans can be called with short notice, even within 24 hours. Interest rates on broker loan rates usually are only about a percentage point above short-term interest rates like the federal funds rate. Also called call loan rate.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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