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A margin call occurs when the value of an investor's margin account falls below the broker's required amount. An investor's margin account contains securities bought with borrowed money (typically a combination of the investor's own money and money borrowed from the investor's broker). A margin call 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. Share today's term with your network:
GIF courtesy Giphy Why is 'Margin Call' Today’s Term? Because we’re thinking about the implications of GameStop’s rambunctious ride last week and soaring silver prices, this term seemed appropriate. Incidentally, a lot of people are searching for it on our website lately. It's also this week's term on The Investopedia Express podcast.
Many investors finance market trades by buying on margin — borrowing from their broker to make trades larger than their cash assets permit. Done carefully, this can be profitable. But NYSE and FINRA requirements mean investors must stock their margin accounts with at least 25% of the total value of their securities — and some brokers raise that to 30% or 40%. If the value of your borrowed securities drops below the magic number, you will get a margin call requiring you to either come up with more cash or sell some securities to cover the difference.
Say you (or your brother-in-law) bought a massive number of GameStop shares on margin last week and they dropped significantly before you sold them. That loss in value could deflate your margin account enough to deliver the dreaded margin call — which is actually an email alert these days. Trade responsibly. -Julia 
RELATED READING More on Margin Call
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PODCAST Latest from The Investopedia Express On this week's podcast:
Will the day trading frenzy threaten the overall stock market or has it just changed the dynamics between individual and institutional investors? LPL Financial’s Ryan Detrick joins the show to put the recent events into context. Plus, this is not the first retail trader takeover in history, and it won’t be the last. Jamie Catherwood is back on the show with recent examples from history.
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