Equity present in an individual's account above the legal minimum required for a margin account or the maintenance requirement at a brokerage firm.
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Cash or securities that one has deposited in a margin account over and above the minimum maintenance requirement. The excess margin is available to be used as collateral for margin loans, or it may be withdrawn and used for any other purpose.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The dollar amount of equity in an investor's brokerage margin account that is in excess of what is necessary for meeting either initial margin or maintenance margin requirements. An investor with $30,000 of unmargined securities has an excess initial margin of $15,000 (with Regulation T margin of 50%) and an excess maintenance margin of $22,500 (if the maintenance requirement is 25%). Excess margin may be withdrawn or used to purchase more securities. See also special miscellaneous account.
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.