Margin

Business / Agriculture / Margin: The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring against loss on open futures contracts. The margin is not partial payment on a purchase. (1) Initial margin is the total amount of margin per contract required by the broker when a futures position is opened: (2) maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer’s account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customer’s equity. Sometimes called a performance bond.

Other Words for Margin

Margin Noun Synonyms: edge, border, perimeter, periphery, rim, lip, side, brink, verge
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Margin Agreement

Business / Finance / Margin Agreement: The agreement governing customers' margin accounts. MORE

OTC Margin Stock

Business / Finance / OTC Margin Stock: Shares traded over-the-counter that can be used as margin securities under Regulation T. MORE

Margin Department

Business / Finance / Margin Department: The department in a brokerage firm that monitors customers' margin accounts, ensuring that all short sales, stock purchases, and other positions are covered by the margin account balance. MORE

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