Margin Requirements are the collateral in the form of cash or securities which an investor must have in a margin account before making purchases of investments on credit or margin basis.
Margin requirement
The amount of cash or equity that must be on deposit with a brokerage firm or bank before an investor can begin buying or selling short on margin. The Federal Reserve Board determines the margin requirement.
Initial Margin Requirement
The minimum portion of a new security purchase that an investor must pay for in cash.
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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 ...
Margin requirements
In order to create a margin account, you will need a minimum deposit between $2,000 and $5,000. This deposit is used as collateral against your trading activities.
Margin Requirement
The amount of cash and equity that clients must deposit in the brokerage account to be able to purchase using borrowed capital or sell short.
Margin requirements - trader must have about ½% of the value of the positions they hold in their account for each lot currency being traded. This ends up being about 200:1 leverage. This ends up being $50 per lot or per 10,000 units.
Margin Requirement - The percentage of investment that may be financed using borrowed capital.
Margin requirement(options) - The amount of cash an uncovered (naked) option writer is required to deposit and maintain to cover his daily position valuation and reasonably foreseeable intra- day price changes.
Margin Requirements: When purchasing securities one may borrow (usually from a broker) to finance part of the purchase. The down payment required is called the margin requirement. It is normally expressed as a percentage.
Margin Requirements
Initial margin is the deposit required to maintain either a short or long position in a futures contract, it is NOT a cost.
Low margin requirements. CFX allows trading based on required margin of only $50 per lot in Forex, and $50 per lot in Share CFDs.
Why Margin Requirement Matters?
Leverage is a double-edged sword. With proper usage, it can enhance customers' funds to generate quick returns and increase the potential return of an investment.
If the margin requirement was 2%, then US$3,000 would be set aside in your account to open up the trade (US$150,000 * 2%). You now control 100,000 pounds with just US$3,000.
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 requirement
When buying securities on margin, the proportion of the total market value of the securities that the investor must pay for in cash.
Margin Requirement
Although you may want to avoid using the margin, you will most likely need to use the margin in currency trading. Like the transaction costs, the margin requirement should be low.
Margin Requirements
The amount of cash or marginable securities (for example, blue chip stocks) that an account holder must have in his account to write uncovered (or ...
Marginable Security ...
Margin requirements on futures and options are generally higher, typically between 5 and 20 percent of the value of the trade.
Margin Requirements
The Federal Reserve sets minimum margin rules that must be followed by all brokers. Currently these rules are:
50% Margin on new positions
33% Margin on "maintenance" positions ...
Margin Requirements
Margins are required for open futures positions.
Trading Symbol
KT ...
Margin requirement is open position x margin percentage. Typical margin for equities is 3%-15% depending on the liquidity of the underlying instrument. In our example Apple CFDs require margin of 5%.
$19,442.00 x 0.05 = $972.10 ...
Margin requirement
A performance bond paid upon purchase of a futures contract that protects the exchange clearinghouse from loss.
Margin / margin requirement
The minimum equity required to support an investment position. To buy on margin refers to borrowing part of the purchase price of a security from a brokerage firm.
Mark-to-market ...
The normal margin requirement is between 1% and 5% of the underlying value of the trade. The currency denomination depends on the brokerage through which you execute your trade.
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.
Used for margin requirements
The amount currently used to cover your positions, combining cash balance and the value of un-booked Forex Spot and Forward positions, as well as the implied value of un-booked Forex Option positions.
Why this steep margin requirement? Well, in theory, if you buy the stock at the strike price, it is usually because the stock is crashing....
Leverage and margin requirements
Keep leverage low. Try to choose a broker that offers leverage as low as possible at the first stage.
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.
margin requirement The quantity of money that an investor must deposit in a margin account before... marginable stock A stock approved for buying on margin. marginal Having a very small quantity.
Related: Markowitz diversification Maintenance margin requirementA sum, usually smaller than - but part of the original margin, which must be maintained on deposit at all times.
The law gave the SEC surveillance authority over exchanges and brokers, and the authority to regulate margin requirements. The law also authorized the SEC to enforce the Securities Act of 1933.
In these turbulent times it is not uncommon for a share price to move up to 5% or more in a day and a spread bet with a minimum margin requirement of around 10% would gear returns by up to 10 times.
Pending Purchases The current market costs and any potential margin requirements, based on real-time data, for the orders you have open. This sum includes OCO ("one cancels other") orders; it does not include open contingent orders.
A Margin call is the liquidation of one's positions due to an inability to meet margin requirements. When one's account balance is no longer able to cover one's minimum margin requirement one's positions are closed automatically.
Occasionally, however, because of the swinging market or internal factors, a brokerage may decide to adjust their minimum margin requirements slightly.
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, ...
Leverage Ratio and Minimum Margin Requirements
Leverage is expressed as a ratio and is based on the margin requirements imposed by your broker.
If you would only deposit $4,000 in your trading account, the first trade moves against you by more than $62, and the value of your account falls below the margin requirement of $3,938, then you receive a "margin call".
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%.
Advantage 2: Low Margin requirements
Many spreads have reduced margin requirements, which means that you can afford to put on more positions.
Portfolio Margining: A method for setting margin requirements that evaluates positions as a group or portfolio and takes into account the potential for losses on some positions to be offset by gains on others.
Minimum margin requirements for a particular futures contract at a particular time are set by the exchange on which the contract is traded. They are typically about five percent of the current value of the futures contract.
Margin Requirements - the SEC modified the margin requirements in an attempt to lower the volatility of common stocks, stock options, and the futures market.
As long as the option purchased expires later than the one written, the margin requirements on diagonal spreads are the same as for one-toone bull and bear spreads.
The exhaust price will be the price that the stocks will be sold at to meet the margin requirement.
Settlement Price -- The price established by the Exchange settlement committee at the close of each trading session as the official price to be used by the clearinghouse in determining net gains or losses, margin requirements, ...
The amount of cash you must provide is governed by the margin requirement that the U.S. Federal Reserve sets. For example, currently the margin requirement is set at 50%.
When planning a trade, be aware that if the market becomes volatile, margin requirements may go up, thereby defeating any strategy for adding on to your position.
Strategy-Based Margining: A method for setting margin requirements whereby the potential for gains on one position in a portfolio to offset losses on another position is taken into account only if the portfolio implements one of a designated set ...
Equity brokers offer very restrictive short-selling margin requirements to customers. This means that a customer does not possess the liquidity to be able to sell stock before he buys it.
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 ...
As of September 28, 2001, new, more stringent margin requirements are in effect for pattern daytraders, requiring a minimum of $25,000 in equity or cash to be eligible for margin accounts.
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.
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.
Option margin
The margin requirement for options described in Regulation T and in brokers' individual policies.
Option mutual fund
A mutual fund that buys and sells options for aggressive or conservative investment.
Also called the "initital margin requirement".
Inside Market
The highest quoted bid and the lowest offer price among competing market makers in a security trading on the Nasdaq market.
The exchange clearinghouse determines a firm's net gains or losses, margin requirements, and the next day's price limits, based on each futures and options contract settlement price.
Margin Requirements
Securities and Exchange Commission (U.S.)
SEC Rule 144
SEC Registered Advisory Service
SEC/NASDAQ Settlement
Series of Examinations/Registrations
SIPC, or How to Survive a Bankrupt Broker ...
 See also: Margin, Trading, Market, Stock, Risk
  
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