A request for funds to cover an unfavourable movement in price in the futures and options markets. Margin calls are made by the clearing house on its members, who in turn call clients. If a client fails to meet a margin call, the clearing member can close out that client's position in the marketplace, and the client has to carry any loss incurred. A margin call has two stages: the clearing house issues a statement to the clearing member early in the morning; the clearing member then contacts the clients concerned. It is the clearing member who is liable to the clearing house for the funds demanded - the clearing house recognises only the obligations of the member, not those of the client. Margin call money must be lodged by a specified time, otherwise the member is in default. Also variation margin. See also: initial margin.
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