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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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 Jim Cramer figured this may be the case on the morning of July 30, as reports emerged that Situational Awareness was facing a margin call and its brokers were seeking buyers for its public stock portfolio. Kevin Stankiewicz, CNBC, 7 Aug. 2026 In late July, when AI stocks sold off, the same concentration and leverage forced the fund to sell its entire public equity portfolio, virtually overnight, to meet margin calls. Scott Lavelle, Forbes.com, 6 Aug. 2026 Because the portfolio was financed with heavy leverage, relatively modest declines began triggering margin calls from lenders. Clara Molot, Vanity Fair, 4 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 14 Aug. 2026.

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