Amount of cash or eligible securities required by the Federal Reserve Board and one's brokerage to be deposited with one's brokerage before buying on margin. also called original margin. see also Regulation T.
An initial margin is the good-faith deposit required to activate your account, whether you are using a brokerage firm or administering your own account.
Customers' funds put up as security for a guarantee of contract fulfillment at the time a futures market position is established. See Original Margin.
A returnable deposit, consisting in a certain amount of cash or eligible securities, required to be lodged by buyers and sellers with the clearing house to secure a new futures or options position. (Also known as original margin).
The first deposit by a customer which determines a corresponding maximum trade size.
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.
The amount of money required by a brokerage firm for a trader to execute online currency trades.
The returnable deposit required by clearing houses when opening certain futures and options positions. Initial margin is usually calculated by taking the worst probable one day loss that the position could sustain, and can be paid in either cash or collateral.
The amount of money that must be deposited by a customer before an order is passed to the order book. Initial margin on TradeSports is calculated on the basis of open positions and orders using one of two calculations - the worst-case loss or by using margin rates. Initial margin is returned to available balances (unfrozen) when a trade is closed out/expires or orders are cancelled. JUICE: Slang term for the charge taken on bets by a bookie through the pricing of the bets. Otherwise known as "vig" or "over-round".
The amount of monies or assets a futures/options trader must have in the trading account at the time the order is placed as required by the Futures Clearing Merchant or Exchange. See also "Maintenance Margin."
The amount of cash or eligible securities required to be deposited with an individual broker before engaging in margin transactions. A margin transaction is one in which the individual broker extends credit to the customer in a margin account.
A deposit required by an exchange as a 'good faith' guarantee against a loss from adverse market movements.
Amount of cash or eligible securities required to be deposited with a broker before engaging in margin transactions. The minimum equity to establish a margin account is currently $2,000, and 50% of the price of a new purchase must be in customer equity. See the explanation of margin for more complete information on using margin leverage in your investing.
Initial margin is the excess of cash over securities or securities over cash in repo or securities lending transaction. One party may require a initial margin because of the perceived credit risk of the counterpart. No initial margin is typically expected in fixed income transactions but where it does occur it normally ranges from 1% to 5%. Initial margin is normally posted in securities lending transactions. Australian domestic loans are typically collateralised at 105% of their market value with cash collateral and 100% with non-cash collateral. The purpose of initial margin is usually to protect the supplier of cash with protection in the fall in market value of the collateral during the course of the trade. The size of the margin often varies between according to the volatility of the collateral and the credit standing of the counterparts.
The initial or first deposit that a client places with his broker or dealer as evidence of good faith against a futures or forward contract, or a short option position. Also called "performance bond".
Additional margin. The additional margin serves to cover the additional closing out costs incurred. These potential closing out costs would be incurred if - on the basis of the current market value of the portfolio - the most unfavourable price development expected occurred during the next day of trading. This margin is calculated for futures and options. EEX AG demands the additional margin from the clearing members, the clearing members demand the additional margin of their non-clearing members. Depending on the respective clearing agreement the additional margin can be deposited in the form of bank guarantees, securities or in cash.
Margin to be deposited for absorbing daily losses. It is used in cases where the variation margin, which is calculated several times a day, cannot balance such losses.
The minimum performance bond deposit required from customers for each contract in accordance with the rules of the Exchange.
The margin paid initially to trade currency futures or margined otc forex. A traders loss may not exceed this margin per contract/lot.
A small percentage of the trade value to be paid to the broker upon the purchase or sale of futures contracts. This will be the minimum balance of your trading account
finance/foreign exchange) The amount of margin which has to be deposited with the clearing house both by the buyer and the seller through the respective broker and/or bank to establish a position in a futures contract.
The initial outlay of money required to open a futures position. The size of this deposit varies from metal to metal, but is usually a fixed amount, set by the Clearing House (qv), representing a small percentage (around 5%) of the value of the contract. (See also Variation Margin).
(Also referred to as Initial Performance Bond) The funds required when a futures position (or a short options on futures position) is opened.
is simply the minimum amount of money you must have in your account (at the close of trading) on the first day you establish a new position. Think of it as an initial requirement you must have to enter an exclusive club. In order to pass through the front door of the “Sugar Club”, you have to have at least $700 in your pocket, and it can not be $700 that you have committed to anything else.
The size of the cash deposit that is required to trade a specified position. By multiplying your proposed stake by the initial margin multiplier, you can calculate the amount of initial margin (or waived initial margin) that is required before you can place the trade.
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.
The margin required by a Foreign Exchange firm to initiate the buying or selling of a determined amount of currency.
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.
The deposit a customer needs to make before being allocated a trading limit.
The margin is a returnable deposit by the broker or marketmaker to establish a position.
When a customer establishes a position, he is required to make a minimum initial margin deposit to assure the performance of his obligations. Futures margin is earnest money or a performance bond.
The amount of cash deposit that is needed to trade a given amount of a CFD position. Initial margin on CFDs is usually 10%-20% of the nominal amount of the position. So on a bargain size of £10,000 initial margin would be £1000-£2000
The amount of cash or security that has to be kept by a party in a clearinghouse before entering into an options or futures contract. It is an estimated amount that would help the clearing member to meet its obligations in the event of default by the party in question.
This is the deposit required from you when arranging a forward transaction.
The deposit required before a client can transact a deal
It is the amount of funds and/or securities required to establish a position.
The initial deposit of collateral required to enter into a position as a guarantee on future performance.
The deposit required from a client when they transact a forward order.
The minimum value on deposit in your account to establish a new futures or options position, or to add to an existing position. Initial margin amount levels differ by contract. Brokerage firms set the level of Initial Margin required, and it may change at any time at their discretion. Increases or decreases in Initial Margin levels reflect anticipated or actual changes in market volatility. Also called "Initial Performance Bond."
The amount of money required for an initial account deposit by the brokerage firm. For the FTG, initial margins for speculation (hedging) are $405 ($300) per contract for corn, $1080 ($800) per contract for soybeans, and $1350 ($1000) per contract for lean hogs.
Customers' funds put up as security to guarantee contract fulfillment at the time a futures or options position is established.
The funds required when a futures position (or a short options on futures position) is opened. See "performance bond."
inside market insider trading
The amount of money that is required by a broker or firm in order to have the ability to buy or sell any trading instrument.
Security service which is to be deposited when accepting a futures transaction (options & futures) - also known as 'first margin'.
The percentage of the purchase price of securities that can be purchased on margin.
The amount of margin required in order to establish a position in a futures contract.
Amount of collateral (cash or securities) required by the Federal Reserve board or by a broker, in order to buy on margin.
The required initial deposit of cash, to enter into a position as a guarantee on future performance.
Refers to the minimum amount of eligible securities or cash required to be deposited with a broker before engaging in margin transactions.
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. For futures contracts, the market determines the initial margin.