margin agreement

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Margin agreement

The agreement governing customers' margin accounts.

Margin Agreement

An agreement between a brokerage and a client governing a margin account. The margin agreement enables the client to borrow from the brokerage in order to buy securities. The agreement details what collateral must be placed on the account and the other duties each party must fulfill. The client must sign the margin agreement before the margin account is created.

margin agreement

The written document that describes the functioning of a margin account and permits a customer's broker to pledge securities in the account as collateral for loans. A customer must sign a margin agreement before undertaking trades on credit in an account. Compare customer's loan agreement.
References in periodicals archive ?
More than 600 organizations now use MarginManager on a daily basis; An extension of Margin Managers automation capabilities to support MSFTA/TBA and Repo margin agreements. Repo margin call volumes increased more than 400% from 2017 to 2018 and MSFTA/TBA volumes increased 12 fold over the same period.
The module is a repository for the margin agreements, providing margin processing, reporting and reconciliation with brokers.
Beyond this, risk can be mitigated by the use of central counterparties or bilateral margin agreements, called credit support annexes (CSAs).
If banks and dealers see their costs rise, they will pass them through to end users in bid-ask spreads and might require bilateral margin agreements with end users.
Gilbert was found to have magnified risks of purchases by using margin agreements and was suspended from the securities business for one year.
A third question concerns stress-testing in the credit analysis of hedge funds and the structuring of margin agreements. Stress-testing simulates the effects on a portfolio if many asset relationships simultaneously move adversely far beyond historical observation.