Business / Taxes / Margin Requirement: The margin requirement is the minimum amount the Federal Reserve, in Regulation T, requires you to deposit in a margin account before you can trade through that account. Currently this minimum, or initial margin, is $2,000, or 50% of the purchase price of securities you buy on margin, or 50% of the amount that you receive for selling securities short. In addition, there's a minimum maintenance requirement, a minimum of 25% and often more, of the market value of the securities in the account. The maintenance requirement is set by the New York Stock Exchange (NYSE), the National Association of Securities Dealers (NASD), and the individual brokerage firms.
Margin Noun Synonyms: edge, border, perimeter, periphery, rim, lip, side, brink, verge
Requirement Noun Synonyms: requisite, prerequisite, demand, precondition, condition, qualification, stipulation, sine qua non, provision, proviso, demand, necessity, essential, desideratum, must
Requirement Verb Synonyms: need, want, demand
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 MORE
Business / Finance / Option Margin: The margin requirement for options described in Regulation T and in brokers' individual policies. MORE