Call Loan
Call loan - a brokerage firm collateralized loan that has no fixed maturity date and can be called (terminated) at any time.
It has a fluctuating interest rate that is computed daily.
Generally, the loan is payable on demand the day after the loan has be contracted.
If it is not called, the loan automatically renews for another day.
The call loan rate is the rate of interest that the bank charges the brokerage firm for these collateralzed loans for the broker's
margin customers.
Usually the brokerage firms charge their clients a minimum of ½ of 1% over this call loan rate.
The call loan rate is published daily in the Wall Street Journal.
