Regulation T Call

Regulation T Call

On an initial transaction on a margin account, an order by a brokerage for an account holder to deposit more cash or securities into the account because the value of the cash and securities currently in it is below 50% of the value of the securities purchased on margin. The name comes from Regulation T, a Federal Reserve regulation requiring the initial margin requirement to be at least 50% of the amount borrowed for the account. If the account holder is not able to make the necessary deposit, he/she must close out enough positions in order to make the deposit or risk the account becoming blocked.
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