Debit balance


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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 ?
In these circumstances, after the consolidation at county level of the current account, its debit balance reflects liquidities (surplus) of resources and the credit balance reflects payments made exceeding the Treasury resources (deficit) in the county plan.
Also the account of other benefits as at 31/12/2012, showed a debit balance of EUR 10 mln, because the amount of payments (grants, aids, benefits) significantly exceeded the total revenues and reserves.
The supplier account ought to show a credit balance of $57,200, with a corresponding debit balance in the delivery vehicle cost account, and the expense entry must be cleared:
The debit to cash, a debit balance account in the balance sheet, would serve to increase the debit balance, or show more cash.
I definitely have a debit balance in my music equity account," he says.
Postpone the holiday booking and wait until summer, maybe, when the debit balance is diminished.
9 APR), with loans costing even less if borrowers offset the debit balance of the loan against any credit balance.
There is no interest on a debit balance and no repayment schedule, but members are expected to bring their account balances back to zero.
The taxpayer argued that the deduction for taxes was proper under generally accepted accounting principles; however, the Board held that the actual taxes paid that exceeded back taxes and led to a debit balance in the "company's deferred taxes" account could have been paid in one year or many years prior to the tax year in question.
In that case, the partner must contribute enough cash to the partnership to eliminate any debit balance in his or her capital account.
Since each expense account has been described as having a normal debit balance, the accounts are added together to arrive at an amount for total expense on the income statement.
A bank can have a net credit or a net debit balance.