call loan

n.
A loan repayable on demand at any time. Also called demand loan.

A loan provided to a brokerage firm and used to finance margin accounts. The interest rate on a call loan is calculated daily. The resulting interest rate is referred to as the call loan rate.

Investopedia Says:
Call loans use securities as collateral for the loan. It is important to note that a call loan can be cancelled at any time.

Related Links:
Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky. Margin Trading

Short-term demand loan to a broker secured by pledged securities. Brokers use the loans to finance underwriting or to secure advances to customers who maintain margin accounts. The broker loan rate usually is a percentage point or so above such short-term rates as the federal funds rate or the Treasury bill note. Broker loans are usually callable on 24-hour notice, hence the term call loan rate.

One that brokers make from banks to cover the securities positions of their clients; also called broker call loan. The rate is quoted daily in newspapers as a money market indicator.

A loan that is payable at any time on the demand of the lender; in some instances, the borrower may also have the right to repay the loan at any time he chooses.

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