Good faith deposit

Good Faith Deposit - A good faith deposit or 'earnest deposit' is a monetary payment, usually on real estate, that indicates to the seller that the buyer is genuinely intending to complete the purchase.

good faith deposit investment & finance definition
Money that a buyer deposits with a seller, or deposits with a third party, as a guarantee that a contract or sales agreement will be completed.

GOOD FAITH DEPOSIT - A sum of money or surety bond provided to an issuer of a new issue of municipal securities by an underwriter or underwriting syndicate as an assurance of performance on its offer to purchase the issue.

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

MARGIN - A good faith deposit a speculator gives to his broker prior to initiating his first trade.

Margin is a good faith deposit to ensure against trading losses. In the financial world, it is a common practice now for foreign exchange to be traded on margin, which means for a small outlay one can open up much larger position in the market.

margin Margin is a good faith deposit that a trader puts up as collateral to hold a... margin account A type of account in which the brokerage lends the client cash with which to...

An amount of funds that must be deposited with the broker for each contract as a good faith deposit on the contract. Related: Security deposit (initial). Margin callA demand for additional funds because of adverse price movement.

The amount of money that must be deposited with a broker for each contract traded as a good faith deposit to insure fulfillment of options and/or future contract(s). Most brokers require a set amount of money to initially open a trading account.

Margin is the amount of money needed as a "good faith deposit" to open a position with your broker. It is used by your broker to maintain your position.

This amount is referred to as the “margin requirement' or the “good faith deposit'. In most cases, traders will be able to get the entire amount back once they decide to close the position.

It acts as a good faith deposit by the trader to ensure against trading losses. A margin account allows customers to open positions with higher value than the amount of funds they have deposited in their account.

Also called security deposit. An amount of funds that must be deposited with the broker for each contract as a good faith deposit on the contract. Related: Security deposit (initial).
Margin call ...

This collateral is also called a margin which may also be called as the "good faith deposit". Once the trader has put down a margin he will receive a leverage. The amount of margin that the trader puts up will determine his leverage.

In futures trading margin is a good faith deposit which by design requires minimal actual funds to control the nominal contracts size. This leverage is largely responsible for the potential of outsize returns in managed futures.

Good-faith deposit: In a competitive underwriting, the bidders must make a good faith deposit, to show that they have the capability of handling the offering.

set aside from the account balance as a deposit to open a position with the broker in order to execute the trade and keep positions open. Margin is used as a leverage to be able to place trades with the interbanks as a “good faith deposit'.

Good faith deposit
Good money
Good through/until date order
Good-this-Month order (GTM)
Goodwill
Government National Mortgage Association (Ginnie Mae)
Government obligations
Government securities
Government sponsored enterprises
Governments ...

See also: Deposit, Trading, Market, Order, Sell