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margin call

margin call

4 8.2
A demand from a broker for more money or stocks to bring an investment account to the required level
  • noun
  • /ˈmɑrdʒɪn kɔl/
  • Specialized
translation icon : llamada de margen
  • The stabilization measures included outright purchases of plunging stocks (in the amount of $20 billion), capitalization of selected banks, and financial support (of up to $50 billion) to companies owned by Russian oligarchs who had scrambled to raise cash in order to meet margin calls.
  • meet a margin call
  • cover a margin call
  • get a margin call

And there was some stock that was forced upon the market both by margin calls from brokers and some that was forced out by in improperly secured bank loans.

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Examples

  • The amount of money in your margin account fluctuates daily as the market fluctuates, but if your account drops below this maintenance margin amount, then brokers are required to make a margin call.

    Blog text (29)
  • This is termed a margin call, and the typical result of a margin call is the selling of the stock purchased with the loan.

  • One hundred million went to pay margin calls.

  • Just to cover some margin calls!

  • Then came the crash, and he got a margin call.

    Fiction book (1996)
  • And so that means that when the price really starts to fall, the margin calls are going to come in fast and furious.

  • This margin call requires that you deposit more money into your account to bring it back up to the minimum maintenance amount.

    Blog text (29)
  • The last thing you want is a margin call during a market downturn.

    Blog text (11)
  • Say we've had a large margin call on our client positions.

  • If the value of your investments drops too low, you might receive a margin call from your broker asking for more funds.

Synonyms

call
vsmargin call
  • Specialized
42 8.1

A demand for payment, or the right to buy something at a set price

is a specific broker demand to add funds to meet account minimum

How Severe

liquidation process
  • Specialized
5.8
forced sale
  • Formal
5.6
margin call
  • Specialized
4 8.2
warning
1.0
reminder
342 1.0

Surface Forms

margin call singular
margin calls plural

Morphology

margin + call

The compound combines 'margin' (required collateral) and 'call' (a demand for payment), so the meaning 'a demand to top up margin' is directly derivable from the constituents; it is a regular noun–noun composition used in finance. Although the topic is domain-specific, a learner who already knows the meanings of 'margin' and 'call' will transparently infer the MWE meaning.

Etymology

Margin call comes from stock trading when people buy shares with borrowed money. The margin is the small amount they must keep and the broker makes a call—a demand—if that amount falls, asking them to 'add more money' or sell stocks. That's why a margin call means an official demand to add funds or sell shares.