Margin Call (Noun)
Meaning
A demand by a broker that a customer deposit enough to bring his margin up to the minimum requirement.
Classification
Nouns denoting communicative processes and contents.
Examples
- When the customer's stock value plummeted, his broker made a margin call requiring an immediate cash deposit.
- Due to a rapid decline in stock price, John received a margin call and was forced to put more money into his trading account.
- In an attempt to reduce her potential losses, Emily liquidated her stock after receiving a margin call from her online broker.
- Because Tom failed to respond to a margin call in time, his trading firm closed his under-margin position.
- Several customers were put out when the company suddenly imposed higher minimum requirements resulting in mass margin calls being made across their user base.