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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That set off both margin calls and compulsory sales at the fund. Davis Giangiulio, CNBC, 21 Aug. 2026 When these holdings fell sharply, margin calls forced the fund into distressed selling. Jim Osman, Forbes.com, 17 Aug. 2026 In July, Situational Awareness faced margin calls after AI bets soured, leading the hedge fund to strike a deal with Ken Griffin’s Citadel to offload a big chunk of its public equity book. Katherine Doherty, Fortune, 15 Aug. 2026 Wall Street banks that had lent Situational Awareness gobs of money to magnify its bets issued the fund margin calls—non-negotiable demands to stump up more cash. John Cassidy, New Yorker, 10 Aug. 2026 See All Example Sentences for margin call

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.merriam-webster.com/dictionary/margin%20call. Accessed 30 Aug. 2026.

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