Call money rate

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.

Broker Loan Rate

The interest rate at which banks make loans to brokers in order to finance margin loans for their clients. Because the broker wishes to make a profit on his/her own margin loans, he/she offers margin loans at a premium to the broker loan rate. It is also called the call money rate.