Margin Requirement

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.

Other Words for Margin

Margin Noun Synonyms: edge, border, perimeter, periphery, rim, lip, side, brink, verge
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Other Words for Requirement

Requirement Verb Synonyms: need, want, demand
Requirement Noun Synonyms: requisite, prerequisite, demand, precondition, condition, qualification, stipulation, sine qua non, provision, proviso, demand, necessity, essential, desideratum, must
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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 MORE

Option Margin

Business / Finance / Option Margin: The margin requirement for options described in Regulation T and in brokers' individual policies. MORE

Margin Call

Business / Agriculture / Margin Call: (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels: (2) a request by the clearinghouse to a clearing member to make a deposit of original margin, or a dail MORE

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