eligible margin

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Eligible Margin

Collateral that may be used for a margin account. When one borrows funds from a broker in order to buy on margin, one must generally put up collateral in order to guarantee repayment. Very often the collateral is the security (or securities) bought on the margin account; however, certain low-priced stocks are sometimes not accepted as collateral and the investor must use some other collateral. The collateral a broker accepts is known as the eligible margin. See also: Restricted account.

eligible margin

Collateral that is specified by a firm or an exchange as acceptable for satisfying margin requirements. For example, certain low-priced stocks may not be acceptable as margin.
References in periodicals archive ?
NEW YORK, March 11, 2014 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has implemented an enhanced collateral management program for BofA Merrill Lynch that expands collateral eligibility and creates greater collateral management efficiencies for depositing eligible margins at CME Clearing.