Margin Call is the Federal Reserve Board’s demand that a customer deposit, either money or securities be returned. The Margin Call amount is expressed as a percentage of the market value of the securities at the time of purchase. Margin Calls must be paid back in one payment period. This is where investors can get into trouble. Imagine being heavily margined (borrowed money), and having the entire amount called. The investor could be way under water on their margin securities and have to find a way to repay their loan.
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