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.
The amount that an investor must deposit in a margin account before buying on margin or selling short, as required by the Federal Reserve Board's Regulation T. see also mark-to-market.
The minimum amount that a customer must have deposited in order to enter new orders or maintain open positions. Otherwise known as Margin Liability. (See also frozen funds.)
The minimum portion of a new security purchase price that an investor must pay in cash. Margin requirements are determined by the Federal Reserve Board. (See also Buying on margin.)
The amount an uncovered (naked) option writer is required to deposit and maintain to cover a position. The margin requirement is calculated daily.
Cash required on deposit to secure amount borrowed to buy securities.
The amount of cash or marginable securities required to initiate a trade within a margin account. In general, J.B. Oxford & Company will not allow you to initiate opening trades without sufficient account worth. The Federal Reserve Board sets minimum initial requirements for stock transactions (Regulation T) and the Exchanges set the minimum initial requirements for options transactions (NASD rule 2520). J.B. Oxford & Company may impose higher margin requirements at any time.
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.
According to Regulation T of the Federal Reserve Board, it is the minimum of $2,000 or 50% of the purchase price of eligible securities bought on margin or 50% of the proceeds of short sales. This amount must be deposited in the client's margin account in the form of cash or eligible securities. See: House Maintenance Requirement; Initial Margin Requirement; Margin; Margin Account; Margin Security; Minimum Maintenance Requirement; Regulation T; Selling Short
Minimum amount that a client must deposit in the form of cash or eligible securities in a margin account as spelled out in Regulation T of the Federal Reserve Board. Reg T requires a minimum 50% of the purchase price of eligible securities bought on margin or 50% of the proceeds of short sales. Also called initial margin.
