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Initial margin |
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Initial margin (1) Amount of money deposited by both buyers and sellers of futures contracts to ensure performance of the terms of the contract; (2) amount of cash or eligible securities required to be deposited with a broker before engaging in margin transactions. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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In a volatile market, investors who put up an initial margin payment for stock may be required to provide additional cash if the price of stock falls, Yang said. For Treasury bonds held by your broker, the maximum initial margin is 90%. The Board would expect that if the SROs were given responsibility for initial margins on equities, they would replace the existing requirements with more risk-sensitive standards. |
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