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.

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