Call Money

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 margin accounts or the purchase of securities. The funds can be obtained quickly.

Brokerages know that they are taking on risk by using funds that can be called at any time, so they typically use call money for transactions that will be resolved quickly. If the bank recalls the funds then the broker can issue a margin call on its clients in order to make the repayment. The call money rate is used as the interest rate on the loans.

Investment dictionary. . 2012.

Look at other dictionaries:

  • call-money — callˈ loan or callˈ money noun (finance) A loan or money called in for repayment or payable when demanded • • • Main Entry: ↑call …   Useful english dictionary

  • call money — / kɔ:l ˌmʌni/ noun money loaned for which repayment can be demanded without notice. Also called money at call, money on call …   Dictionary of banking and finance

  • call money — money lent by banks, as to brokerage firms, on which repayment may be demanded at any time. * * * …   Universalium

  • call money — 1) Money put into the money market that can be called at short notice (see also money at call and short notice). 2) See option money …   Big dictionary of business and management

  • Call Money —    Interest bearing deposits repayable on demand. This covers both domestic money markets and Euromarket funds. Also known as day to day money or sight money.    ► See also Money Market …   Financial and business terms

  • call money — noun : money loaned or ready to be loaned on call …   Useful english dictionary

  • call money — noun money loaned by a bank or other institution which is repayable on demand …   English new terms dictionary

  • call money — Fin money that brokers use for their own purchases or to help their customers buy on margin …   The ultimate business dictionary

  • Call Money — 1. Geldanlage bei einer Bank, für die keine besondere Laufzeit vereinbart wird. Die Einlage kann, je nach Vereinbarung (bis etwa 10 Uhr vormittags), eintägig („One Day Notice“) oder zweitägig ( „Two Days Notice“) gekündigt werden. 2. Täglich… …   Lexikon der Economics

  • 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. The New York Times Financial Glossary …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.