Is a margin call always bad?

Yes, it signals that an investment made with borrowed money is losing value, putting the investor's capital at immediate risk and requiring urgent additional funds.

Can you get a margin call if you don't use leverage?

No. A margin call is specifically a feature of leveraged investing, where you have borrowed money from the broker to make larger investments.

What's the difference between an 'initial' and a 'maintenance' margin call?

An initial margin requirement is the minimum equity needed to *open* a leveraged position. A maintenance margin call occurs when the equity in an existing position falls below a required minimum, demanding more funds to keep it open.

Is 'margin call' used outside of finance?

It is occasionally used metaphorically in business or politics (e.g., 'The scandal was a margin call on the government's credibility'), but this is not common. Its primary and almost exclusive use is financial.

Is “margin call” formal?

Margin call is usually technical / financial / formal in register.

How do you pronounce “margin call”?

Margin call: in British English it is pronounced /ˈmɑːdʒɪn ˌkɔːl/, and in American English it is pronounced /ˈmɑːrdʒɪn ˌkɔːl/. Tap the audio buttons above to hear it.

margin call: meaning, definition, pronunciation and examples

C1/C2

UK/ˈmɑːdʒɪn ˌkɔːl/US/ˈmɑːrdʒɪn ˌkɔːl/

Technical / Financial / Formal

My Flashcards

Quick answer

What does “margin call” mean?

A broker's demand that an investor deposit additional funds or securities to cover the minimum required maintenance margin for a leveraged investment position.

Audio

Pronunciation

Definition

Meaning and Definition

A broker's demand that an investor deposit additional funds or securities to cover the minimum required maintenance margin for a leveraged investment position.

A critical event in leveraged investing requiring immediate financial action; used metaphorically for any urgent demand to provide more resources to sustain a risky situation.

Dialectal Variation

British vs American Usage

Differences

The term is identical in both varieties. The underlying financial system and its rules are globally standardised, leading to no lexical difference. Spelling may follow local conventions for surrounding text (e.g., "realise" in UK, "realize" in US).

Connotations

Identical negative connotations of risk, potential loss, and urgency in both varieties.

Frequency

Equally common and core in financial contexts in both the UK and the US.

Grammar

How to Use “margin call” in a Sentence

The broker issued a margin call to the client.The client failed to meet the margin call.A sharp drop in share prices triggered multiple margin calls.

Vocabulary

Collocations

strong

issue a margin callreceive a margin callface a margin callmeet a margin calltrigger a margin call

medium

substantial margin callimmediate margin callinitial margin callmaintenance margin callmargin call notice

weak

fear of a margin callpressure from a margin callrisk of a margin callconsequences of a margin call

Examples

Examples of “margin call” in a Sentence

verb

British English

The broker threatened to margin-call the account if the value fell further.
Several investors were margin-called during the market turmoil.

American English

The brokerage will margin-call clients who fail to maintain the required equity.
He got margin-called after the stock plummeted.

adverb

British English

[Extremely rare. No standard adverbial use.]

American English

[Extremely rare. No standard adverbial use.]

adjective

British English

The investor was in a margin-call situation.
They sent a margin-call notice to all affected clients.

American English

He faced margin-call pressure from his broker.
The account entered margin-call status overnight.

Usage

Meaning in Context

Business

Core term in finance and investing: 'The hedge fund faced severe liquidity issues after several large margin calls.'

Academic

Used in economics, finance, and business studies papers analysing market risk and leverage.

Everyday

Very rare; might be used in personal finance discussions or news reports about market crashes.

Technical

Precise, regulated term in brokerage operations, trading platforms, and financial compliance.

Vocabulary

Synonyms of “margin call”

Strong

emergency funding demand

Neutral

liquidation noticedemand for additional collateral

Weak

margin warningleverage alert

Vocabulary

Antonyms of “margin call”

fully-funded positionunleveraged accountdebt-free investment

Watch out

Common Mistakes When Using “margin call”

Using it as a verb: 'The broker margin-called me.' (Incorrect). Correct: 'The broker issued a margin call.'
Confusing it with a simple request for payment; it is a specific, contractual demand tied to leveraged positions.
Pronouncing 'margin' with a soft 'g' as in 'magic'; it has a hard 'g' /dʒ/.

FAQ

Frequently Asked Questions

: Yes, it signals that an investment made with borrowed money is losing value, putting the investor's capital at immediate risk and requiring urgent additional funds.
: No. A margin call is specifically a feature of leveraged investing, where you have borrowed money from the broker to make larger investments.
: An initial margin requirement is the minimum equity needed to *open* a leveraged position. A maintenance margin call occurs when the equity in an existing position falls below a required minimum, demanding more funds to keep it open.
: It is occasionally used metaphorically in business or politics (e.g., 'The scandal was a margin call on the government's credibility'), but this is not common. Its primary and almost exclusive use is financial.
: A broker's demand that an investor deposit additional funds or securities to cover the minimum required maintenance margin for a leveraged investment position.
: Margin call is usually technical / financial / formal in register.
: Margin call: in British English it is pronounced /ˈmɑːdʒɪn ˌkɔːl/, and in American English it is pronounced /ˈmɑːrdʒɪn ˌkɔːl/. Tap the audio buttons above to hear it.

Phrases

Idioms & Phrases

“[Not applicable as the term is itself a technical idiom. No common English idioms use 'margin call' metaphorically.]”

Learning

Memory Aids

Mnemonic

Think of 'margin' as the edge of safety in your investment. A 'margin call' is when the broker CALLS you to say you've fallen off the edge and must climb back up by adding more money.

Conceptual Metaphor

FINANCIAL RISK IS PHYSICAL PRECARIOUSNESS (being on a narrow margin/edge); A FINANCIAL DEMAND IS A SUMMONS (a call to appear and rectify the situation).

Practice

Quiz

Fill in the gap

If the value of your leveraged portfolio falls below a certain level, your broker will likely issue a .

Multiple Choice

What is the primary consequence of failing to meet a margin call?