Undermargined account

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Undermargined account

A margin account that no longer meets minimum maintenance requirements, requiring a margin call on the investor.

Undermargined Account

A margin account in which the value of the assets purchased on margin falls below the maintenance requirement on the account. A margin account holder is required to maintain money or securities worth a certain amount in order to continue trading on margin; this rule exists to protect the broker from financing excessive and irresponsible trading. An undermargined account may result in a margin call or in the account becoming restricted.
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