margin agreement

Also found in: Acronyms.

Margin agreement

The agreement governing customers' margin accounts.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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.
References in periodicals archive ?
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.