adjusted debit balance

Adjusted Debit Balance

The amount of money owed by a customer to his/her broker after paper profits and losses are taken into consideration.

Notes:

This value is calculated by subtracting the accountholder's profits on short sales and balances in a special miscellaneous account. According to the SEC's Regulation T, withdrawals from margin accounts can only be made if there is a small adjusted debit balance.

See also: Broker's Call, Capital Gain, Capital Loss, Initial Margin, Maintenance Margin, Margin, Margin Account, Margin Call, Minimum Margin, Paper Profit/Paper Loss, Regulation T

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Adjusted debit balance (ADB)

The account balance for a margin account that is calculated by combining the balance owed to a broker with any outstanding balance in the special miscellaneous account, and any paper profits on short accounts.

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adjusted debit balance

The amount owed a broker by a customer, adjusted by paper profits on short sales and balances in a special miscellaneous account. Adjusted debit balance is used to determine whether a customer is permitted to withdraw cash or securities from a margin account.