credit balance
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Credit balance
The surplus in a cash account with a broker after purchases have been paid for, plus the extra cash from the sale of securities.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Credit Balance
The profit from a short sale that is deposited into a margin account. The credit balance consists of any maintenance margin the account holder must keep in the account as well as additional funds that may be withdrawn or used to buy more securities. This latter is called the free credit balance.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
credit balance
Cash and the market value of securities held in a brokerage account. Compare debit balance. See also free credit balance.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.