What is Brokers Call?
When you want to buy an amount of stocks that you can’t completely fund, you may be able to borrow the money you need from your broker. This type of loan is called a margin loan. And, like any other loan, it comes with an interest rate. The interest rate that you will be charged for a margin loan is determined by the individual broker, but it’s generally based on the broker’s call, also known as the broker’s call rate, call loan, or call loan rate. This rate is published daily in the Wall Street Journal. While a stock broker may not be the first person you think of when deciding where you want to borrow money from, it can be a profitable venture. But like most things, it is not an endeavor without risk. By signing up for a margin account with your stock broker, you can purchase more stock than you can actually pay for by borrowing the money from your broker. The cash and/or stocks you own in the account are used as security for the loan. In fact, in order to be eligible for the loan, b
