Meaning of margin call | Babel Free

Definitions

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).

Equivalents

Examples

“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.”

CEFR level