Describing a margin account in which the value of the securities used as collateral has dropped below the margin requirement. An overmargined account is susceptible to a margin call.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Of or relating to an account in which the market value of the collateral in a brokerage account is above the minimum amount determined by the initial margin requirement.
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.