expression

margin call

a demand to deposit more funds to cover investment losses

In more detail

1. (noun) a demand by a broker for an investor to add more money to their account because the value of their investments has fallen below a required level

Examples

1. The trader received a margin call when the stock price dropped sharply.

How to use margin call

A margin call is a financial term used in investment and trading contexts when a broker requires an investor to deposit additional funds to maintain the minimum required account balance. It typically occurs when market losses erode the equity in a margin account below the maintenance requirement set by the broker or regulatory bodies.

Common phrases

receive a margin call
issue a margin call
meet a margin call
margin call requirement
triggered a margin call

Synonyms

maintenance call · forced deposit requirement · collateral demand

Word family

margin · call

A common mistake

Learners sometimes confuse margin call with a simple request for payment; it is specifically tied to falling investment value and margin account requirements, not a general demand for funds.

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