Definition of Regulation T Calls
Federal Reserve Board Regulation T margin calls are issued when a customer makes atransaction in a margin account and does not meet the minimum initialrequirement of 50% cash or loan available. This margin call is referred to as a Fed Call. The customer must increase the equity in the account by depositing additional funds and/ormarginable securities. If the necessary amount of cash or securities isnot deposited into the account within the specified time period,securities may be sold to meet the call, and the account may becomerestricted.