Broker's call

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 borrow funds from a bank ("with an agreement to repay the bank immediately on call"). The rate paid on such loans is about 0.75 – 1.25% higher than the LIBOR.


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  • 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… …   Investment dictionary

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  • 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

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