Initial margin requirement

INITIAL MARGIN REQUIREMENT - When buying securities on margin, the proportion of the total market value...
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Initial Margin Requirement
Initial dollar amount or marginable securities that a brokerage client is required to deposit with a broker before placing margin transactions--one in which the broker extends credit to the client in a margin account.

Initial Margin Requirement - Amount of cash and securities a customer must have in his/her account required by Federal Regulation "T" before trading on margin.

The initial margin requirement is set by federal law and varies from product to product. For example, to buy stock on margin, you must have at least 50% of the purchase price in your account.

Regulation T Federal Reserve Board regulation that deals with grantingcredit to customers by securities brokers, dealers, and exchange member as far as initial margin requirements and securities that are covered under the rules.

Under Regulation T, $2000 in cash or securities must be deposited with a broker before any credit can be extended; then an initial margin requirement must be met, ...

The Security Exchange Act of 1934 gives the Board of Governors of the Federal Reserve the responsibility to set initial margin requirements, but individual brokerage firms are free to set higher requirements.

The Initial Margin requirement is based on a worst-case loss scenario of portfolio at client level to cover VaR (value at Risk) over a one day horizon, subject to a minimum Base Margin defined by FMC for the respective commodity.

margin account without enough equity to meet the initial margin requirement that is restricted from any purchases until the requirement is fulfilled.
Definition 2.

This demand for more funds in either cash and/or securities is to restore an account to its initial margin requirement level. Generally, this occurs when the price action is adverse to the account holders positions.

rule on extensions of credit in the United States, a federal law that regulates extensions of credit by brokers and dealers and specifies initial margin requirements and payment rules on some securities transactions
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Restricted account
A margin account without enough equity to meet the initial margin requirement that is restricted from any purchases until the requirement is fulfilled.

Margin - The amount paid by the customer when using a broker's credit to buy or sell a security. Under Federal Reserve regulations, the initial margin requirement since 1945 has ranged from the current rate of 50% of the purchase price up to 100%.

The cash amount put up or paid by the customer when the customer funds part of a purchase with a loan from the broker (“margin debt'). Under Federal Reserve regulations, the initial margin requirement since 1945 has ranged from 50% of the ...

A regulation established by the Federal Reserve Board which covers the extension of credit to clients by securities brokers, dealers, and members of the national exchanges. It sets the initial margin requirement and defines eligible, ineligible, ...

To ensure that margin requirements keep pace with any subsequent losses account holders may have to pay variation margin to bring the account up to initial margin requirements.

See also: Margin account, Expense, Banks, Saving, Federal reserve board