Investment dictionary

CALL MONEY RATE

Call Money Rate: translation

The interest rate on a type of short-term loan that banks give to brokers who in turn lend the money to investors to fund margin accounts. For both brokers and investors, this type of loan does not have a set repayment schedule and must be repaid on demand.

Trading on margin is a risky strategy in which investors make trades with borrowed money. The advantage of margin trading is that investment gains are magnified; the disadvantage is that losses are also magnified. When investors trading on margin experience a decline in equity past a certain level relative to the amount they have borrowed, the brokerage will issue a margin call that requires them to deposit more cash in their account or to sell enough securities to make up the shortfall.


  1. call money rate—Call money rate translation Also called the broker loan rate the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the inv...Financial and business terms
  2. call money rate—call money rate translation Also called the broker loan rate the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the inv...Financial and business terms
  3. call money rate—бирж. процентная ставка по брокерской ссуде ставка процента уплачиваемая брокерскими фирмами банкам за кредиты используемые для финансирования клиентов при покупке ценных...Англо-русский экономический словарь
  4. call money rate—ставка з кредиту до зажадання онкольна ставка вдсоткова процентна ставка з онкольного кредиту...Англо-украинский бизнес словарь