In market parlance, what is the term for the collateral that a holder of equities might have to deposit with their broker to cover the credit risk the holder poses?

A "margin call" is not a pleasant situation for an investor. As defined on Investopedia.com, a margin call "occurs when the value of an investor's margin account falls below the broker's required amount." It refers "specifically to a broker's demand that an investor deposit additional money or securities into the account so that it is brought up to the minimum value, known as the maintenance margin."

Asked by Tom Cohen · Last updated 5 years ago · 1.1K views