Advertising

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. 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.

 
 

Follow this link for all the terms related to margin.

 
 Embedded terms in definition
 Cash
Exchange
Futures contracts
Futures contract
Futures
Initial margin
Investor
Margin requirement
Margin
Market value
Market
Reserve
Securities
Security
The exchange
 
 Related Terms
 

<< Initial margin Initial public offering >>

What Happens If a Bank Fails?: How the FDIC protects depositors, including providing quick access to insured funds. More...

Defeat is not the worst of failures. Not to have tried is the true failure. - George E. Woodberry

Advertising



Copyright 2009-2018 GVC. All rights reserved.