or "Opening Margin Requirement" - The minimum Margin Balance necessary, at the sole discretion of FOREX.com, to establish a new Open Position.
This is the amount needed on deposit in order to place a trade. Also known as Notional Trading Requirement (NTR).
Amount of cash required to be deposited in your Smith Barney account when purchasing securities with your Portfolio CreditLine. The initial requirement may also be met by depositing securities with sufficient Borrowing Power.
Amount needed on deposit or credit in order to open a position. This can be reduced by placing a stop loss
The minimum portion of a new security purchase that an investor must pay for in cash.
The minimum Margin Balance necessary to establish a NEW Open Position. FXDIRECTDEALER reserves the right to change the Initial Margin requirement at it's sole discretion. The Initial Margin requirement can be expressed as a percentage (i.e., 2% of US dollar position amount) or can be calculated by the Leverage Ratio. For example, a $100,000 position in USD/JPY would require $2,000 of margin given a 2% Margin Requirement. Expressed as a leverage ratio, if 50:1 leverage ratio is used a $100,000 position would require the same Initial Margin ($100,000 / 50 = $2,000).
When buying securities on margin, the proportion of the total market value of the securities that the investor must pay for in cash. The Security Exchange Act of 1934 gives the board of governors of the Federal Reserve the responsibility to set initial margin requirements, but individual brokerage firms are free to set higher requirements. In futures contracts, initial margin requirements are set by the exchange.
Initial dollar amount or marginable securities that a brokerage client is required to deposit with a broker before placing margin transactions--one in which the broker extends credit to the client in a margin account. The initial margin requirement, according to the Federal Reserve Board's Regulation T, is presently 50% of the purchase price (or $2000--whichever is higher) when buying marginable securities or 50% of the proceeds of a short sale. See: Margin; Margin Account; Margin Call; Margin Requirement; Margin Security; Regulation T; Selling Short