| a demand from a brokerage house to a customer that more money or securities be deposited in his or her margin account when the amount in it falls below that stipulated as necessary to cover the stock purchased. |
Margin Call
A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin. This is sometimes called a "fed call."
Investopedia Commentary
You would receive a margin call from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. You would be forced either to deposit more money in the account or sell off some of your assets.
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See also: Broker's Call, Buying Power, Call Loan, Call Loan Rate, Equity, Federal Reserve Board, Initial Margin, Leverage, Maintenance Margin, Margin, Margin Account, Market Value
margin call