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 ?
GURTNACREHY PUMA went down by the minimum margin when dropping to A2 last time and can go one better at 8.
Asif Bajwa said the PBS collects data very carefully and there was a minimum margin of errors in the data.
But the son of Shamardal appeared to enjoy his first experience of Dundalk's polytrack last month when failing by the minimum margin, a nose, to catch Strait Of Zanzibar in a rated event pver tonight's trip.
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.
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.
100,000 plus minimum margin of solvency based upon net premium written, as follows: NPW less than $500,000: $100,000.
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.

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