Remargining

Remargining

Putting up additional cash or securities after a margin call on a brokerage customer's margin account so that it meets minimum maintenance requirements.

Remargin

To place more cash or securities into a margin account as collateral following a margin call. In a margin call, a brokerage requires a client to remargin because the market value of the collateral currently in the account has fallen below the margin requirement, which is a least 25% (and sometimes 50%) of the value of the securities the client has purchased with borrowed money. Remargining occurs to force the client to comply with federal regulations and/or the brokerage's own rules.
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References in periodicals archive ?
In addition to offering settlement and custodial services, clearing banks provide collateral management services, such as daily revaluation of assets, daily remargining of collateral, and allocation of the borrower's collateral to its lenders in accordance with the lenders' eligibility and risk management constraints.
Loans were not subject to remargining; that is, the haircut would not be altered during the life of the loan.
TALF credit extensions therefore took the form of long-term nonrecourse loans secured by eligible collateral, not subject to mark-to-market or remargining requirements.
With remargining or recourse, a transitory but sharp price decline could force a levered fund to close out its position at a loss.