Debit balance


Also found in: Dictionary.

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 of money an investor owes on a margin loan. This is calculated as the amount the investor directly owes his/her broker. It does not account the paper profit the investor has made on various transactions. When determining the amount owed in the case of margin call, one generally uses the adjusted debit balance, which starts with the debit balance and subtracts the amount of applicable paper profit.

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.

References in periodicals archive ?
Also the account of other benefits as at 31/12/2012, showed a debit balance of EUR 10 mln, because the amount of payments (grants, aids, benefits) significantly exceeded the total revenues and reserves.
The supplier account ought to show a credit balance of $57,200, with a corresponding debit balance in the delivery vehicle cost account, and the expense entry must be cleared:
The simplest way to address its default risk is to limit the debit balance that any member can incur.
In that case, the partner must contribute enough cash to the partnership to eliminate any debit balance in his or her capital account.
A bank can have a net credit or a net debit balance.
It's like having your money in two separate pots but you are only charged interest on the net debit balance.
5 billion by the end of 2010, compared with a debit balance of YR 533 in 2009.
Mr James advised delegates to look out for renewal fees as these are based on the limit agreed and not on the daily debit balance.
Through this recalculation, which typically occurs in the early summer, a new budget amount is calculated and any credit or debit balance is rolled forward.
If a client's position were to be liquidated they would not lose their entire initial margin and, therefore, won't end up with a debit balance, i.
Through this recalculation, which occurs in the early summer, a new budget amount is calculated and any credit or debit balance is rolled forward.
Cutler Securities was unable to meet its obligation on the position, requiring Southwest to close the position, leaving it with an unsecured debit balance of approximately $6.