margin department

Margin department

The department in a brokerage firm that monitors customers' margin accounts, ensuring that all short sales, stock purchases, and other positions are covered by the margin account balance.

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margin department

The section of a brokerage firm's back office operation that is responsible for overseeing customer credit accounts. The margin department ensures that investors meet the margin standards determined by the Federal Reserve, the various exchanges, and the brokerage firm itself. Also called credit department.