margin call

margin call
In futures markets, companies are required to make a deposit, known as a margin, with the clearing house. The margin is based on the company's exposure under its open positions, and if this increases, say, by an adverse movement in the price, the clearing house would make a margin call by asking for a higher level of margin.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


margin call
A demand by a broker that an investor who has purchased securities using credit extended by the broker (on margin) pay additional cash into his or her brokerage account to reduce the amount of debt owed.

Dictionary from West's Encyclopedia of American Law. 2005.


margin call
A demand by a broker that an investor who has purchased securities using credit extended by the broker (on margin) pay additional cash into his or her brokerage account to reduce the amount of debt owed.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

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