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.
Invest in up to 30 companies in one trade. Try Motif today and get a $150.
Disclaimer – The writers at Investment Hunting are not financial advisors. We are not licensed in the financial industry. Any and all information found on this site, including financial terms and definitions should be used for entertainment purposes only. For more information on Investment Hunting’s disclosures and disclaimers, please visit the Disclaimers page. As an investor, you need to take personal responsibility for any and all portfolio transactions. Always consult your financial advisor or trusted investment authorities before making any financial decisions.