special bond account(redirected from Special Bond Accounts)
Special bond account
Special Bond Account
A margin account that exclusively uses borrowed funds to buy bonds. That is, one is not permitted to buy stocks or derivatives on a special bond account. Because bonds both carry fewer risks and have less volatile prices than other securities, special bond accounts have lower minimum maintenance requirements than other margin accounts.
special bond account
A brokerage account in which a customer is limited to transactions in bonds. Special low margin requirements apply to a special bond account because bond prices are generally less volatile than those of most other securities.