Margin call

A demand by the margin lender for the borrower to provide additional security when the loan-to-valuation ratio limit (or the buffer above it) is exceeded. Typically, margin calls occur after market falls which see the value of a margin investor's shares or managed fund portfolio drop. Investors have a number of options when a call is made; provide cash to reduce the loan amount, provide more securities to raise the portfolio value, or sell securities in the portfolio to reduce the loan amount.

Previous News Approved securities
Advertisement