Broker's call

From Wikipedia, the free encyclopedia

This article is orphaned as few or no other articles link to it. Please help introduce links in articles on related topics. (October 2006)

Please help improve this article or section by expanding it. Further information might be found on the talk page or at requests for expansion. (April 2007)

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.