Margin call
Also called: margin shortfall
A demand from a broker or lender for more money when a leveraged position falls, failing which the position can be sold.
When you buy with borrowed money or trade leveraged products, the broker requires your own money in the position to stay above a minimum. If prices fall and your share drops below it, you must add money quickly. If you do not, the broker can sell your position, often at a low price.
Margin calls are why leveraged investors can be forced to sell at the worst moment and lose the chance of any later recovery.
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