Health Boards


Encyclopedia


My Profile

Health Boad


Health Jobs


Shopping


Health Tools

Margin

The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring against loss on open futures contracts. The margin is not partial payment on a purchase. (1) Initial margin is the total amount of margin per contract required by the broker when a futures position is opened; (2) maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customerís account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customerís equity. Sometimes called a performance bond.


Selected Margin links:

© 1997-2006 Healthboard.com.   Healthboard.com is a purely informational website, and should not be used as a substitute for professional legal, medical or technical advice.