Initial margin

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Initial margin

(1) Amount of money deposited by both buyers and sellers of futures contracts to ensure performance of the terms of the contract; (2) amount of cash or eligible securities required to be deposited with a broker before engaging in margin transactions.

Initial Margin

The money or securities an investor keeps in a margin account in order to be able to borrow from a brokerage for short sales or other purposes. The initial margin requirement is kept as collateral until the brokerage calls the margin and the client pays back what is owed. FINRA requires that the initial margin requirement kept must be at least 25% of the amount borrowed, while some brokerages have initial margin requirements of up to 50%.
References in periodicals archive ?
The winners led by the minimum margin at the break but they were rocked within 12 seconds of the restart when Tyrone's Michael McGleenan fired home.
The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) (together, the Commissions) have approved a joint proposal to align the minimum margin required on security futures with other similar financial products.
It was only by the minimum margin of a nose that the David Barron-trained mare was beaten by Afaak in the Royal Hunt Cup, one of the toughest and most competitive handicaps in the calendar.
It was only by the minimum margin of a nose that the David Barrontrained mare was beaten by Afaak in the Royal Hunt Cup, one of the toughest and most competitive handicaps in the calendar.
The prospect of a minimum margin was put forward by Racehorse Owners Association president Nicholas Cooper in the body's recently published annual report, raising the potential impact on the sport's income caused by the government's decision to reduce the maximum stakes on FOBTs to PS2 from PS100 and the potential movement of punters from betting shops to online.
But nine-year-old novice Joe Farrell and Adam Wedge - Curtis' very first runner in Scotland - ensured a dire campaign ended on a high as he passed the post with the bare minimum margin in hand over the fastfinishing Ballyoptic.
Asif Bajwa said the PBS collects data very carefully and there was a minimum margin of errors in the data.
He said that prices be fixed with minimum margin of profit during Ramzan.
It said it would continue to review a range of "strong opportunities" which met its minimum margin intake requirements.
With a minimum margin of one shot and nett score 70 this year's lady club champion Sanjoli Singh became second.
And as the winning distance was the minimum margin, the stewards only needed a ten-minute deliberation to change the result, which saw 25-1 chance Gile Na Greine in third.
But the fact that Amano, favored by industrialized nations, scraped through to victory by the bare minimum margin, without support of developing states, compounded a rich-poor split on the Board and may make it harder for him to lead the agency.

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