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 ?
He said that prices be fixed with minimum margin of profit during Ramzan.
IRS futures are virtually identical to their OTC-cleared counterparts yet they have a much lower minimum margin requirement.
30 Windsor SP forecast 5-4 Produced an excellent effort on his debut over course and distance this month to go down by the minimum margin, splitting two who had already shown a decent level of form.
It said it would continue to review a range of "strong opportunities" which met its minimum margin intake requirements.
The dual Nunthorpe Stakes-winning 12-year-old, a 33-1 shot for the Borderlescott Sprint Trophy, went under by the minimum margin to David O'Meara's Smoothtalkinrascal.
The son of Sinndar, owned by Khalid Abdullah, had gone down as a likely contender for the Ladbrokes St Leger at Doncaster on his previous race at Newmarket where he denied Shantaram by the minimum margin.
With a minimum margin of one shot and nett score 70 this year's lady club champion Sanjoli Singh became second.
Her day had started with a very difficult tie against 11-year-old clubmate Mason Hill (Broad Oak), winning by the minimum margin of 21-20.
The report also said the bourse is considering increasing the minimum margin deposit by 10-20 percentage points from the current 30 percent.
The Ed Dunlop-trained five-year-old dug deepest of all to overhaul Gerard Butler's Jack Sullivan close to home and prevail by the minimum margin.
But the seconds went down by the minimum margin to their Avon counterparts, and the thirds were on the receiving end of a 13-2 result away to a strong Northamptonshire side.
The Peter Harris-trained colt 12-1 chance held off the challenge of Tiber by the minimum margin, despite being badly bumped by the runner-up as he hung violently left in the closing strides.

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