Day Loan

A temporary transfer of funds from a bank to an individual broker or a brokerage firm that is made early in the day for the purchase of securities that same day. The securities serve as collateral for the day loan, which must be repaid by the end of the day.

Also called a "morning loan".

A day loan is a source of very short-term funding. Once the securities have been purchased, the loan becomes a regular broker call loan, and may become due at any time. Brokers must pay a daily interest rate, known as the "call rate", on these loans.


Investment dictionary. . 2012.

Look at other dictionaries:

  • day loan — A loan from a bank to a broker prior to the delivery of securities. Upon the delivery of the securities, a day loan becomes a regular broker call loan for which securities serve as collateral. Bloomberg Financial Dictionary …   Financial and business terms

  • day loan — noun : a bank loan maturing within a day usually on an unsecured promissory note called also clearance loan, morning loan * * * a bank loan to finance the purchase of securities which is repayable within the calendar day on which it is made. Also …   Useful english dictionary

  • day loan — a bank loan to finance the purchase of securities which is repayable within the calendar day on which it is made. Also called clearing loan, morning loan. * * * …   Universalium

  • day-to-day loan — noun or day to day money Britain : call loan …   Useful english dictionary

  • loan — A lending. Delivery by one party to and receipt by another party of sum of money upon agreement, express or implied, to repay it with or without interest. Boerner v. Colwell Co., 21 Cal.Sd 37, 145 Cal.Rptr. 380, 384, 577 P.2d 200. Anything… …   Black's law dictionary

  • loan — A lending. Delivery by one party to and receipt by another party of sum of money upon agreement, express or implied, to repay it with or without interest. Boerner v. Colwell Co., 21 Cal.Sd 37, 145 Cal.Rptr. 380, 384, 577 P.2d 200. Anything… …   Black's law dictionary

  • day-to-day money — noun see day to day loan …   Useful english dictionary

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  • Day count convention — In finance, a day count convention determines how interest accrues over time for a variety of investments, including bonds, notes, loans, mortgages, medium term notes, swaps, and forward rate agreements (FRAs). This determines the amount… …   Wikipedia

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