A demand from a broker to an investor to deposit additional money or securities into their margin account to cover potential losses.
A margin call occurs when the equity in a client's margin account falls below the broker's required minimum level. The broker then demands that the client deposit more funds or securities to bring the account back to the required margin level. Failure to meet a margin call can result in the broker liquidating positions in the account to cover the deficit, often at unfavorable prices.