margin call

noun

, Stock Exchange.

1. a demand from a brokerage house to a customer that more money or securities be deposited in their margin account when the amount in it falls below that stipulated as necessary to cover the stock purchased.

Word History and Origins

Origin of margin call¹

First recorded in 1960–65

Example Sentences

And more importantly, many can no longer afford to trade — the cost for margin calls to back a firm’s position has skyrocketed.

From Seattle Times

But when prices began falling, Hwang was unable to meet margin calls, leading banks to dump stocks backing his swaps.

From Reuters

That caused it to miss margin calls, and banks to dump stocks that had backed the swaps and which they had bought as hedges.

From Reuters

That drop in valuations also appears to have led to his facing a margin call on a loan he used for other investments.

From New York Times

When the prices of some stocks fell, Hwang was unable to meet margin calls, leading banks to dump stocks backing his swaps, and causing losses for Archegos and others.

From Reuters