Finance glossary
Margin Call
Definition
A broker demand to add funds when account equity falls too low.
A margin call occurs when losses push a margin account equity below the required maintenance level. The investor must deposit cash or sell assets to restore the minimum, or the broker liquidates positions, often at the worst time. Margin calls can force sharp, cascading selloffs.
In a sentence
When his leveraged bet went south, the broker issued a margin call demanding more cash.
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