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Debit balance

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Debit balance
The amount that is owed to a broker by a margin customer for loans the customer uses to buy securities.

debit balance
The amount owed in a brokerage margin account. A debit balance occurs when an investor purchases securities on margin or borrows money from the account by using securities as collateral. Brokerage firms typically charge an interest rate on the borrowed funds that varies with the size of the debit balance. Compare credit balance. See also call loan.

Debit balance. A debit balance is what you owe. It's entered as accounts receivable on the books of the lender and appears on your account statement as a liability.

For example, if you have a margin account and borrow money to buy stock, your monthly brokerage statement will show a debit balance for the amount of the margin loan.



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I definitely have a debit balance in my music equity account," he says.
There is no credit risk as customers can be disconnected immediately their credit or debit balance reaches zero.
However, if your stock is held in a margin account that has a debit balance, you may need to put additional cash or other marketable securities in to the account in order to get the company's stock out of the loanable base.
 
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