Initial margin

Initial Margin Requirement or Opening Margin Requirement
The minimum margin required to establish a new open position. The required initial deposit of collateral to enter into a position as a guarantee on future performance
Interest Arbitrage ...

Definition
Initial margin
The minimum amount of equity, in the form of cash or eligible securities that must be deposited in a brokerage account before making purchases on margin.
RELATED TERMS ...

Initial Margin
The deposit required by the Broker before a client can trade/transact a deal to have some cushion in the event of default by the party.
Top Online Forex Brokers ...

Initial Margin - The initial deposit of collateral required to enter into a position as a guarantee on future performance.
Interbank Rates - at these rates large international banks quote other large international banks.

Initial Margin - The percentage of the price of a security that is required for the initial deposit to enter into a position. The Federal Reserve Board requires a minimum of 50% initial margin.

Initial Margin Requirements:
This is the minimum amount of the security's purchase price you are required to have in your margin account at the time of the trade.

Initial Margin For an individual investor, this represents the amount of money they need to deposit in their brokerage account (specified by regulators) to open a margin account.

Initial Margin
The percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his or her own cash or marginable securities.
Also called the "initital margin requirement".

Initial Margin: Customers' funds put up as security for a guarantee of contract fulfillment at the time a futures market position is established. See Original Margin.

Initial Margin - The amount ofmonies or assets a futures/options trader must have in thetrading account at the time the order is placed as required bythe Futures Clearing Merchant or Exchange. See also"Maintenance Margin." ...

Initial Margin - The margin paid initially to trade currency futures or margined otc forex. A traders loss may not exceed this margin per contract/lot.

Initial margin - The margin required by a Foreign Exchange firm to initiate the buying or selling of a determined amount of currency.

Initial Margin
The margin is a returnable deposit required to be lodged by buyers and sellers with the clearing house to secure a new futures or options position.

Initial Margin
The deposit that clients need to make before they are allocated a trading limit. The first deposit that a client makes and that determines a corresponding maximum trade size.
Interest Rate ...

Initial margin requirement
When buying securities on margin, the proportion of the total market value of the securities that the investor must pay for in cash.

Initial Margin - The amount a futures market participant must deposit into his margin account at the time he places an order to buy or sell a futures contract. Also referred to as original margin.

Initial Margin
The amount of money required by a brokerage firm for a trader to execute online currency trades.
Inside Bars and Outside Bars
{image = inside_out} ...

Initial Margin
Customers' funds required at the time a futures position is established, or an option is sold, to assure performance of the customer's obligations. Margin in commodities is not a down payment, as it is in securities.
Inside Day ...

Initial margin (sometimes called original margin) is the sum of money that the customer must deposit with the brokerage firm for each futures contract to be bought or sold.

Initial Margin
Customers' funds put up at the time a futures market position is established to act as security for a guarantee of contract fulfillment. See also Original Margin.
Initial Performance Bond ...

Initial Margin (finance term)
Related answers:
What happens to the Conservative margin compressional margin and the Tensional margin? Read answer...

Initial margin is fixed at between 0.5% and 30% depending on the underlying product and overall perceived risk in the market at that time.

*Initial margin for British Pound Futures $2,700
*Initial margin for Gold Futures $5,399
Return From "Market Club in May" To "Free Market Club Videos"
Getting Started ...

The initial margin requirement represents the sum of the collateral that is necessary to open a position. The maintenance requirement refers to the amount that is kept in the form of collateral until the position is closed.

What is Initial Margin
What are Interbank Rates
What is The International Organization for Standardization ...

For example if the initial margin for a mini silver contract is $1,000 and the maintenance margin level is $750, $1,000 would need to be allocated as initial margin.

Deposit - The initial margin payable when a futures position is put on.

(Previously referred to as Initial Margin)
Limit Order An order given to a broker by a customer that specifies a price; the order can be executed only if the market reaches or betters that price.

initial margin Amount of cash or eligible securities required by the Federal Reserve Board... Initial Public Offering Abbreviated as IPO, refers to the first sale of stock by a firm to the public. initiate coverage See coverage.

Maintenance Margin A sum, usually smaller than the initial margin, which must remain on deposit in the customer's account for any position. A drop in funds below this level requires a deposit back to initial margin levels.

Initial Margin : The margin is a returnable deposit required to be lodged...
Initial Margin Requirement : The minimum portion of a new security purcha...
Initiation margin : A margin paid by the trading party in order to trade ...

See Initial Margin.
OTC
A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor. These markets have not been very popular.

A customer is trading a gold futures contract that has an initial margin of $5,000 and the customer has $6,000 in the commodity trading account. The maintenance margin level on gold is $4,000.

The minimum initial margin requirement is 50%. But to maintain a margin account, the minimum can fall to as low as 25% (some firms require a higher percentage). Brokers may set their own levels for margin calls, but they can't be lower than 75%.

To open a FX position, a minimum amount which is known as initial margin requirement will be required. Thereafter, the amount required to be kept in collateral until the position is closed is the maintenance margin requirement.

In volatile markets, investors who put up an initial margin payment for a stock may, from time to time, be required to provide additional cash if the price of the stock falls.

There are two margin-related terms you should know: initial margin and maintenance margin.

Initial margin- 1) Amount of Money deposited by both buyers and sellers of futures contracts to ensure performance of the terms of the contract; ...

The dollar amount of equity in an investor's brokerage margin account that is in excess of what is necessary for meeting either initial margin or maintenance margin requirements.

If we entered a futures position using 75% leverage (and, of course, putting up 25% initial margin, which represents 100% minus the 75% leverage), ...

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

More academically, a notice for additional funds to meet initial margin requirements for a security purchase or shortsale. It is usually a sign of one or more of the following: 1) account is undercapitalised (very common in futures trading); 2) not ...

Minimum margin is also known as initial margin or margin requirement. It represents the required minimum amount of money that is needed before actual stock trading can begin.

Payment made in order to restore or maintain initial margin on adverse positions resulting from price movements in futures/options transactions undertaken.
Previous
Next ...

Typically the broker will require a trade deposit, also known as "account margin" or "initial margin." Once you have deposited your money you will then be able to trade. The broker will also specify how much they require per position (lot) traded.

Under Federal Reserve regulations, the initial margin required since 1934 has ranged from 40% of the purchase price up to 100%. Since 1974 the current rate of 50% has been in effect. (see Brokers' Loans, Equity) ...

Metatrader Programming Solutions - Digital Trading Systems ...
You may sustain a total loss of the initial margin funds and any additional funds that you deposit in your account to establish or maintain a position in the FOREX and ...

Variation margin
Additional funds required to maintain the cover provided by the initial margin when there has been an adverse price movement on the market.
Related terms:
Initial deposit/margin ...

The balance of a margin account. Related: Buying On margin, Initial margin requirement.

Related Links: ...

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%.

initial margin, you post this before you can trade, and 2. variation margin, (VM), this is the mark-to-market value of the futures transaction you have. If you have a profit VM will be positive, if you have a loss it will be negative.

Initial margin requirements and margin maintenance can change suddenly. Although both buyers and sellers of options must post margins, the margin for option buyers will never be more than the initial premium paid for buying a put or call.

This is possible because the futures prices tend to move more quickly than the cash markets and the investor can trade ten times the amount of the initial margin he puts up.

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.

Margin: The amount a client pays for a security purchase in a credit (or margin) account with a broker/dealer. Initial margins on purchases are set by the Federal Reserve Board. Minimum margin maintenance amounts are set by the exchanges.

Margin requirements can be met with cash or eligible securities. Under Federal Reserve Board regulation, the initial margin required since 1945 has ranged from 50 to 100 percent of the security's purchase price.

Variation marginAn additional required deposit to bring an investor's equity account up to the initial margin level when the balance falls below the maintenance margin requirement.

The initial good faith margin required for purchases is the "amount of margin which a creditor would require in exercising sound credit judgment". For short sales, the initial margin required is the current market value of the security plus the good ...

Understand, you don't have to borrow the full 50%; the amount you borrow can be less than 50%. The 50% "down payment" is called your initial margin.

However, the presence of a margin call should act as a final warning that you have let your position go as far as you conceivably can (unless the initial margin is out of line with the volatility of the contract).

See also: Margin, Trading, Market, Future, Deposit