One of the mysteries of the English language finally explained.
A demand by a broker that an investor deposit further cash or securities to cover possible losses.
- ‘By the end of the first day of trading he had not only lost $30 per share, but his broker had made a margin call and automatically sold the shares leaving Stephen with no shares at all and a $3,000 debt to his broker.’
- ‘If you're determined to invest on margin, set aside some money to cover a margin call, she says.’
- ‘In this case employing large leverage can be devastating since positions can often go against the trader for many points in a row and, if he or she is not careful, trigger a margin call before the currency eventually turns around.’
- ‘Although this lowers you potential profit, it also reduces the risk of getting a margin call.’
- ‘From some time very soon after the first margin call the further losses cannot be attributed to any alleged misrepresentation, non-disclosure or other negligence of the defendant, even if such were proven.’
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