Definition
A demand from a broker to add money when an account falls below the required margin.
The story
If a leveraged position loses enough that the account drops below the maintenance level, the broker asks for more funds. If the money doesn't arrive in time, or the market is moving fast, the broker can close positions without waiting, at whatever price is available.
Why markets watch it
Coverage mentions margin calls during sharp sell-offs, when forced selling can make a drop worse.
Connects to
Last seen in
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