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Webster's New World Finance and Investment Dictionary » margin call
margin call
margin call definition - finance
A
demand made of a customer of a stock brokerage or futures commission merchant
firm to add more money into his or her account. Margin calls are made in order
to bring investorsÂ’ accounts up to a minimum level. This happens when the price
of a stock, futures contract, or other security declines after it has been
purchased on margin. In the futures market, a clearinghouse also may make a
call asking the member to increase the amount of money on deposit.
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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