debit balance investment & finance definition
The amount owed in a brokerage margin account. A debit balance occurs when an investor purchases securities on margin or borrows money from the account by using securities as collateral.
Definition
Debit balance
The outstanding amount owed to a broker by a customer for a margin loan.
RELATED TERMS ...
The debit balance is the amount owed by an investor to a broker. Often, the balance is associated with the current amount the investor owes that is posted to a margin account.
Customers` net debit balance
Definition:
The Total amount of Credit given by NYSE member firms to Finance customers purchasing securities. ...
Debit Balance
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. (see Margin).
Debt / Equity Ratio ...
Debit Balance
The amount of loan in a margin account.
Debt/Equity Ratio
A comparison of the assets provided by creditors to the assets provided by shareholders.
Debit Balance Total amount owed to a brokerage firm based on loans, commissions and fees.
Debit balance
The amount that is owed to a broker by a margin customer for loans the customer uses to buy securities.
Debit balance: Money a margin customer owes to his or her brokerage firm for loans to purchase securities.
Debit Balance - The portion of a stock's purchase price that is supplied by the broker extending credit to an investor in a margin account.
Debit Balance - The amount of loan in a margin account.
Deed of Trust - The trust agreement drawn up when a corporation plans to issue bonds or other debt securities. It includes such items as assets, interest payments, maturity dates, etc.
Debit balance: Money owed to a broker/dealer by a customer.
Debit spread: An options spread position in which the premium paid on the long position is greater than the premium received on the short position.
Debit balance
A debit balance is what you owe. It's entered as accounts receivable on the books of the lender and appears on your account statement as a liability.
See: Debit Balance; Margin; Margin Account; Selling Short; Special Miscellaneous Account ...
Adjusted Debit Balance
The amount of money owed by a customer to his/her broker after paper profits and losses are taken into consideration.
Adjustment in Conversion Terms ...
Adjusted debit balance (ADB)
The account balance for a margin account that is calculated by combining the balance owed to a broker with any outstanding balance in the special miscellaneous account, and any paper profits on short accounts.
debit balance Simply put, a negative balance - where the account holder owes money to their... debit card A card that accesses cardholders. funds immediately, through electronic transfer....
Account Value The marked-to-market liquidation value of your account which includes the credit from any cash or money market funds, less any liabilities including short positions and debit balances.
Debit balance: An accounting situation in which the trading losses in a customer's account exceed the amount of equity in that customer's account.
Deep-out-of-the-money options: Definitions vary by exchange.
See Central Registration Depository credit and debit balance
A credit balance represents monies owed to a customer by a broker/dealer, generally resulting from the customer's sale of securities.
Each portfolio also has a debit balance, used to keep track of margin liabilities when you purchase a security on margin. When you close a margin position, the proceeds are used first to clear the margin liability from the debit balance.
Restricted Account
A margin account in which the debit balance exceeds the loan value, as defined by Regulation T.
Restricted Securities
Unregistered securities with limited transferability, usually acquired in a private placement.
In securities, the margin requirement a brokerage customer must maintain at all times in a brokerage account with a debit balance.
Difference between the credit and debit items of an account, e.g. a current account. A debit balance refers to an account in which liabilities exceed the credit balance, the opposite situation is called a credit balance.
Deutsch: Saldo ...
Carrying Cost
The interest expense on a debit balance created by establishing a position.
The customer's equity is the account's market value of long positions (commonly just referred to as "long market value") minus the account's debit balance, or the credit balance minus market value of short positions ("short market value").
Hypothecation: A broker/dealer's pledge of a customer stock to a bank as collateral for a bank loan. The proceeds of the bank loan are used to finance the debit balance in the customer's margin account.
In your brokerage account, the formula to calculate an account's equity is the same for both cash and margin accounts: Equity = (Long Market Value) - (Short Market Value) + (Credit balance) - (Debit balance) ...
 See also: Balance, Securities, Stock, Security, Market
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