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Margin account

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Margin Account
A margin account allows a trader or investor to buy stocks either with cash or with borrowed funds. Funds for a margin account are borrowed from the broker or brokerage firm handing the investor's transactions.

 


Margin Account - Stocks
A leverageable account in which stocks can be purchased for a combination of cash and a loan.

Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
cash and a loan. The loan in the margin account is collateralized by the stock and, if the value of the stock ...

margin account
brokerage account allowing customers to buy securities with money borrowed from the broker.

Definition of
margin account
Finance
account with investment broker who lends money an account with a broker who lends money for investments, held in the name of an investor who pays only a percentage of the price of purchases ...

Margin accounts are usually opened to take advantage of the opportunity to leverage an investment and not because investors do not have the money to fund the purchase.

Margin Account
Definition: Brokerage house account which allows customers to buy securities on margin.

Margin account
Margin accounts are brokerage accounts that allow you a much wider range of transactions than cash accounts. In a cash account you must pay for every purchase in full at the time of the transaction.

Margin account:
An account with which securities can be purchased by a combination of cash and loans.

Margin Account: A special type of brokerage account, which allows the client to pay a portion of the price of the securities and borrow the balance from the broker.

margin account An account holding funds available for making margin payments.
margin call A demand for additional margin.
marginal tax rate The fraction of an incremental dollar of income that would be paid as taxes.

Margin Account
An investment account which allows you to purchase securities with funds borrowed from the broker at a specified interest rate.

Margin Account:
A special account set up by a broker for a client who wants to buy and sell securities using margin.
Margin Call: ...

Margin Account
An account in which the firm lends the customer money on purchases or securities on short sales.

Margin Account
An account with a brokerage firm that allows its clients to buy securities with money borrowed from the broker. Depending on the security, an investor can sometimes borrow up to 50% or more of the market value.

Margin Account An account with a securities broker where they extend credit using securities as collateral. Margin Loan A loan from a stock broker to an investor using securities as collateral.

Margin Account
A brokerage account in which borrowed funds have been used, or are expected to be used, to finance the purchase of securities.

Margin Account
A brokerage account that permits an investor to buy securities on credit or to borrow against the securities already deposited in the account.
Major Turn ...

Margin Account
A type of account with a broker-dealer, in which the broker agrees to lend the customer part of the amount due for the purchase of securities
Market Order ...

margin account: A brokerage account that allows a person to borrow funds to purchase securities.
margin call: Demand for additional funds in a margin account to meet or re-meet minimum maintenance requirements.

Margin account: An account in which a customer may pay only part of the purchase price of securities.
Margin Agreement: The customer consent pledging his securities as collateral for a debit balance.

Margin Account - An account in which an investor can (but is not required to do so) buy securities on credit, using other securities held in the account as collateral. A margin account is required for all options trades.

Margin Account that has fallen below Margin Requirements or Minimum Maintenance requirements. As a result, the broker must make a Margin Call to the customer.
English▼
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Margin account: A brokerage account that lets you borrow funds to purchase securities, using your own marginable securities as collateral.

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

Margin Account
This type of brokerage account allows you to borrow funds, using your own marginable securities as collateral. The borrowed funds may be used for any purpose, including the purchase of more securities. For comparison see Cash Account.

Margin Account
In order to take advantage of margin, and investor must open a margin account with his or her broker.

Margin Account
A brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities and cash.

A margin account provided to a customer by a brokerage, in Federal Reserve Board terminology. Regulation T requires that all transactions involving credit given to the customer must be made in a general account.
General Agent ...

A margin account that no longer meets minimum maintenance requirements, requiring a margin call on the investor.
Underperform
When a security is expected to, or does, appreciate at a slower rate than the overall market rate of performance.

A margin account's credit balance. Fictitious credit exists after the proceeds from a short sale are accounted for with respect to the margin requirement.

In a margin account, this is the difference between the securities owned and the margin loans owed. It is the amount the investor would keep after all positions have been closed and all margin loans paid off.
Equity Option ...

With a margin account, the value of the investments in the account is recalculated continuously to determine whether it meets margin requirements.

Is this a margin account or a cash account? Can you explain the differences between the two?

If you use a margin account to buy on margin or sell short, for example, you pledge securities (stocks, bonds, or other financial instruments) as collateral for the debt.

In a customer's margin account, that portion of the purchase price of stock, bonds or commodities that is covered by credit extended by the broker to the margin customer.top
Delayed opening ...

The balance of a margin account. Related: buying on margin, initial margin requirement.
Invoice
Bill written by a seller of goods or services and submitted to the purchaser for payment.

Same-day substitution Offsetting changes in a margin account during the day that result in no overall change in the balance of the account. Samurai bond A yen-denominated bond issued in Tokyo by a non-Japanese borrower.

callable loan A loan used by brokerage firms to maintain margin accounts or finance underwriting... callable stock A stock which the issuer may buy back on demand at a specified price. Also...

" The purchase and sale or the short sale and cover of the same security in a margin account on the same day. Day trading Establishing and liquidating the same position or positions within one day's trading.

Maintenance call A call for additional money or securities when a margin account falls below its exchange-mandated required level. Maintenance fee A yearly charge to maintain brokerage accounts, such as asset management accounts or IRAs.

Rehypothecation Pledging to banks by securities brokers of the amount in customers' margin account as collateral for broker loans, which are used to cover margin loans to customers for margin purchases and selling short.

In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. Equity is also shorthand for stock market investments.

Carrying charge The fee a broker charges for carrying securities on credit, such as on a margin account. Carrying costs Costs that increase with increases in the level of investment in current assets. Carrying value Book value.

Leveraged stock Stock that is purchased with credit, as in a margin account. Life annuity Annuity that makes a fixed payment for the life of the annuitant. Life cycle fund Also called a lifestyle fund.

margin account An account that lets an investor borrow from the broker to buy additional securities using part of the securities as collateral.

MARGIN ACCOUNT A type of brokerage account that allows the owner or customer to purchase certain securities by borrowing a portion of the price from the brokerage firm.

The minimum amount of cash or equity that must be kept in a margin account to fulfil the margin requirements of an exchange....(Read more)
Minimum Price Fluctuation ...

Leverage (Magnification) at Work: Let's compare the return from a non-margin account with that from a margin-account.
non-margin account
Company ABC is currently trading at $40 per share.

A margin account, however, is also known as a loan account, because your brokerage will literally lend you the money to buy that security. In fact, the security itself will act as collateral.

This is used for stock only, and can only be done in a margin account. If available, the stock may be borrowed from a brokerage firm for delivery to the buyer and must be bought back at a future date.

A maintenance margin will be required if your margin account falls below the required amount due to your investment losses.

Federal Reserve Board Regulation T margin calls are issued when a customer makes a transaction in a margin account and does not meet the minimum initial requirement of 50% cash or loan available. This margin call is referred to as a Fed Call.

A call for more money or securities to be deposited into a brokerage client's margin account.

Also, the excess of the market value of securities over debit balance in a margin account. Estate taxes A tax on the estate of a deceased person before it transfers to heirs or entities owed by the estate. Eurodollar U.S.

Refers to the initial margin account deposit needed when buying or selling a futures contract; approximately 2%-10% of the contract value.

Margin balance is the total balance in a margin account. If the balance is negative, then the amount is owed to the brokerage firm.

Liquidation of a margin account after a customer has failed to bring an account to a required level by producing additional equity after a margin call. The selling of securities by a broker when a customer fails to pay for them.

The loan in the margin account is collateralized by the stock and, if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock.

FICTITIOUS CREDIT - A margin account's credit balance. Fictitious credit exists after the proceeds from...
FICTITIOUS DEED OF TRUST - Comprehensive master deeds of trust are established by lenders to cover all ...

See also: Banks, Expense, Values, Bills, Saving