margin call

noun

plural margin calls
: a demand made to an investor by a broker or brokerage firm for more funds or securities to be added to a margin account when the equity in the account falls below a certain threshold
In other words, a margin call is a demand that you increase the equity in your margin account to sufficient levels through one or more transactions.Kevin L. Matthews II
… the nation's largest discount-brokerage house, said Thursday it expects to take a $22 million charge against fourth-quarter earnings because of the failure of several customers to satisfy recent margin calls.Paul Farhi

Examples of margin call in a Sentence

Recent Examples on the Web
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For Black women, who are currently seeing unemployment rates surge, or Latinas struggling with high business interest rates, the margin call is not a theoretical economic concept. Katica Roy, Fortune, 21 Apr. 2026 One borrower who manages a large hedge fund hocked his wife’s eight-carat diamond ring—worth upwards of $600,000—after receiving a large margin call (the loan was eventually repaid and the ring was returned. Sergei Klebnikov, Forbes.com, 19 Apr. 2026

Word History

First Known Use

1888, in the meaning defined above

Time Traveler
The first known use of margin call was in 1888

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Cite this Entry

“Margin call.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.grautoblog.com/dictionary/margin%20call. Accessed 28 Apr. 2026.

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