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The payment requirement for customers in a margin account according to Regulation T is a minimum of 50 of the purchase price of securities bought on margin.
One reason would be to cover a non-payment of a margin call.
Margin requirements are the minimum deposit that is left with a stockbroker to use as a down payment on securities. When buying on margin, the net value of the account needs to stay above this margin requirement
Buying on margin, taking a "margin" loan from the broker to help buy part of a stock purchaseMargin call, this happens when the broker demands full payment of your "margin" loan
it is not an account.
A " Margin Account" is a type brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase
A margin in commodities trading, is the amount of money you have to deposit in your brokerage account before trading a futures contract. The margin amount varies on each commodity and fluctuates with the volatility of the markets. There is an initial margin amount required when entering a contract and "maintenance" margin amount that must be kept in the account at all times during the contract holding period, which is typically lower than the initial margin. The balance of your account will fluctuate with gains and losses on the contract and if the balance falls below the "maintenance margin" amount, you get a "margin call", which means you must deposit enough money to meet the margin or close your contract. If you don't do either of these options, the broker will close the position before the balance falls to zero.
"The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "excess equity." For example, if you have $1,000 cash in a margin account and the maximum margin rate is 50%, then your total buying power is $2,000. For a non-margin account, the buying power is equal to the amount of cash in the account." From Investopedia.com
Yes, margin interest is typically charged on day trades if you are using a margin account to trade stocks.
The margin requirements for VIX futures vary depending on the broker and the specific contract being traded. Generally, traders are required to maintain a certain amount of funds in their account to cover potential losses. It is important to check with your broker for the specific margin requirements before trading VIX futures.
Yes, actually brokerage houses offer clients a number of different accounts. The most common ones are a cash account, a margin account (cash and margin account), and an option account (cash, margin, and option account). Basically, these accounts represent different levels of credit and trustworthiness of the account holder as evaluated by the brokerage house.
There are several available online sources where one can learn what a margin account is. Just a few of them are Investopedia, Themargintrader, Etrade, and Investingonline.