Debit balance

(redirected from Debit Balances)
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Related to Debit Balances: Credit Balances

Debit balance

The amount that is owed to a broker by a margin customer for loans the customer uses to buy securities.

Debit Balance

The amount of money an investor owes on a margin loan. This is calculated as the amount the investor directly owes his/her broker. It does not account the paper profit the investor has made on various transactions. When determining the amount owed in the case of margin call, one generally uses the adjusted debit balance, which starts with the debit balance and subtracts the amount of applicable paper profit.

debit balance

The amount owed in a brokerage margin account. A debit balance occurs when an investor purchases securities on margin or borrows money from the account by using securities as collateral. Brokerage firms typically charge an interest rate on the borrowed funds that varies with the size of the debit balance. Compare credit balance. See also call loan.

Debit balance.

A debit balance is what you owe. It's entered as accounts receivable on the books of the lender and appears on your account statement as a liability.

For example, if you have a margin account and borrow money to buy stock, your monthly brokerage statement will show a debit balance for the amount of the margin loan.

References in periodicals archive ?
Each entity would be accountable for its own IHB accounts just as if they were external, and would receive interest for credit balances and pay interest for debit balances as with an external bank account.
Any customer who applies for and receives a formal overdraft while the offer is running will also pay no interest on agreed debit balances from when their overdraft is set up until April 4.
Expense and loss accounts ordinarily have debit balances.
The banks with the matching net debit balances are obligated to provide the gold.
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The net debit cap control limits the net debit balances of DTC participants so that DTC will have sufficient liquidity to fund end-of-day net settlement with sufficient collateral support based on the collateral monitor.
Southland National's return to profitability is a result of management's actions, which include a better product design resulting in improved persistency, reduced agent debit balances and corporate restructuring.
Problem: A retailer had vendors going into debit balances due to returns of excess inventory.
Resources in AP Tools Suite include hundreds of templates, forms and checklists to meet a wide range of accounts payable needs, whether conducting unclaimed property due diligence, preparing requests for proposals for outsource services and evaluating proposals, evaluating software solutions, planning for disaster recovery and business continuity, collecting vendor debit balances, interviewing job candidates or calculating charge-back pricing for shared services.
The Company also took a one-time non-cash adjustment to inventory and wrote off debit balances of several financially distressed music and software vendors.
Each Friday, the Treasury sweeps credit balances or covers debit balances from its Ziraat account.
At the same time, the company announced that debit balances established before January 1, 1970 will not be charged against royalties earned by these artists on or after March 1, 1997.