Call margin意思

"Call margin" is a term used in the context of stock trading and investing, specifically in relation to margin accounts. A margin account is a brokerage account in which the investor can borrow money from the brokerage firm to purchase securities. The money borrowed is known as a margin loan, and it is secured by the investor's portfolio.

The term "call margin" refers to the situation where a brokerage firm, or clearing house, issues a notice to the investor to deposit more money or securities into their margin account. This is typically done to meet the minimum maintenance margin requirements as stipulated by the regulatory authorities. The call margin notice is issued when the value of the investor's portfolio falls below the maintenance margin level, which is a percentage of the total value of the securities in the account.

When a call margin notice is issued, the investor is required to add more funds or securities to their account within a specified time frame, usually a few days, to bring the account back up to the maintenance margin level. If the investor fails to do so, the brokerage firm may liquidate some or all of the securities in the account to cover the margin call.

Margin calls can be triggered by a decline in the value of the securities held in the margin account, which reduces the account's equity. They are a risk associated with margin trading, as they can force investors to sell their securities at an inopportune time, potentially leading to significant losses. Therefore, investors using margin accounts should be prepared to meet margin calls and have a plan in place to manage their risk.