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margin call

noun

Definitions

  1. A request by a stockbroker or similar for a client to deposit more money in order to…

    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.

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sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA