Broker's Call

Broker's Call

The interest rate charged by banks on loans made to broker-dealers, who use these loan proceeds to make margin loans to their clients. These broker's call loans are payable by the broker-dealer on call (i.e., immediately) upon request from the lending institution. The broker's call rate forms the basis on which margin loans are priced.

The broker's call rate may fluctuate on a daily basis, since it depends on a number of factors such as market interest rates, funds' supply and demand and economic conditions. It is published daily in publications such as The Wall Street Journal and Investor's Business Daily.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Broker's call — Broker s call, also known as the Call loan rate, is the interest rate relative to which margin loans are quoted. Individuals may borrow on margin a part of the funds they use to buy their securities from their broker. The broker, in turn, may… …   Wikipedia

  • Call Loan Rate — The short term interest rate charged on a secured call loan, usually in margin accounts. Also known as the broker s call. The call loan rate can change on a daily basis, and the loan can also be canceled with 24 hours notice …   Investment dictionary

  • call loan — ☆ call loan n. 1. a loan that must be repaid on demand 2. a loan to a broker that is secured by shares of stock purchased with the borrowed money and which may be called if the shares decline in value: also call money …   English World dictionary

  • call loan — A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan. Bloomberg Financial Dictionary * * * call loan call loan ➔ loan1 * * * call loan UK US noun [C] (also demand loan) ► FINANCE a loan that must be… …   Financial and business terms

  • Call option — This article is about financial options. For call options in general, see Option (law). A call option, often simply labeled a call , is a financial contract between two parties, the buyer and the seller of this type of option.[1] The buyer of the …   Wikipedia

  • call option — An option that gives the buyer the right, but not the obligation, to purchase ( go long ) the underlying futures contract at the strike price on or before the expiration date. Chicago Board of Trade glossary A contract giving the buyer the right… …   Financial and business terms

  • Call option — An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract. The New York Times Financial …   Financial and business terms

  • Call money rate — Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge. The New York Times Financial Glossary …   Financial and business terms

  • call money rate — Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge. Bloomberg Financial Dictionary …   Financial and business terms

  • Call Money — Money loaned by a bank that must be repaid on demand. Unlike a term loan, which has a set maturity and payment schedule, call money does not have to follow a fixed schedule. Brokerages use call money as a short term source of funding to cover… …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”