Margin call
A demand for more funds when a leveraged position loses value.
Definition
A demand for more funds when a leveraged position loses value.
Why it matters
Derivatives let you hedge a risk or take it on with little capital: useful for companies, dangerous when misused.
How to read it in the news
Always spot the leverage: a small move in the underlying can produce a large gain or a large loss.
Notitia newsroom · education, not investment advice.