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Margin call

• A demand for additional funds because of adverse price movement. Maintenance margin requirement, security deposit maintenance

• The Federal Reserve Board's demand that a customer deposit a specified amount of money or securities when a purchase is made in a Margin Account. The amount is expressed as a percentage of the market value of the securities at the time of purchase. The deposit must be made within one payment period. See also: Margin; Fed Call.

• Is the phrase used to represent a call for additional funds. This demand for more funds in either cash and/or securities is to restore an account to its initial margin requirement level. Generally, this occurs when the price action is adverse to the account holders positions. It can also reflect an increase in margin requirements.

 
 

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