margin call

Noun

margin call (plural margin calls)

1. A request by a stockbroker or similar for a client to deposit more money in order to cover losses that have built up in open positions held on margin (rather than having been paid for in full).
   • In a liquidity crisis, as we have seen all too recently, a sudden tightening of credit sets off a vicious cycle of margin calls that lead to forced sales, which in turn cause asset prices to plunge, and so on.2009 August 9, Mark Hulbert, “Buy and Hold, or Buy and Fold. But Don't Waver.”, in The New York Times, New York, N.Y.: The New York Times Company, →ISSN, →OCLC, archived from the original on 26 Nov...