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What are margin requirements?

Updated: 9/19/2023
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EncofBizandFinance

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13y ago

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Margin requirements are the amount of credit granted investors for the purchase of securities, such as shares of stock.

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Minimum deposits left with a stockbroker as down payments on securities?

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


What is a margin buyer?

With regards to securities markets, a margin buyer is a person who only puts up a portion of the cost for buying securities. The rest of the funds required is borrowed. The "margin" of what percentage is required is set by a governing body. In the US, the margin requirements are set by the Federal Reserve Bank of NY.


What is adjustable and non adjustable capital?

Exposure and turnover limits are available against both Non margin adjustable additional base capital (NMABC) and MABC, but as the name suggests, NMABC is not adjusted against margin requirements whereas MABC is used for meeting margin requirements. If a particular amount is payable as margin on a day, it is first adjusted against the MABC available. Balance margin, if any, is required to be paid in cash. To the extent that MABC is adjusted against margins, it will not be available for exposure/turnover purposes. The MABC available for exposure will therefore fluctuate daily depending on how much of it has been utilized against margins.


If the Federal Reserve Board decides there is a danger of inflation due to excessive speculation of the stock exchanges it may raise the margin requirements?

MONETARY POLICY


What is the difference between buying on margin and margin call?

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

Related questions

What happens when margin requirements are too liberal?

Margin requirements that are too liberal can damage the stock market and the economy.


What is 4210?

4210 is the Financial Industry Regulatory Authority's (FINRA) rule regarding Margin Requirements.


Why did the federal reserve try to regulate margin loans and why were it's efforts only partly successful?

The Federal Reserve tried to regulate margin loans to gain control of margin requirements for stocks bought on margin. Regulation T gives the Federal Reserve the authority to change the percentage of the initial margin requirement for margin stock. Since 1974 the Federal Reserve has not deemed it necessary to adjust the margin requirement


Minimum deposits left with a stockbroker as down payments on securities?

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


What is a margin buyer?

With regards to securities markets, a margin buyer is a person who only puts up a portion of the cost for buying securities. The rest of the funds required is borrowed. The "margin" of what percentage is required is set by a governing body. In the US, the margin requirements are set by the Federal Reserve Bank of NY.


What is the top margin of an unbound report?

The top margin of an unbound report is typically around 1 inch (2.54 cm) to allow for headers and binding space if needed. However, this margin size can vary depending on the specific requirements of the report or the preferences of the person creating it.


What is a span?

SPAN means Standardized Portfolio Analysis of Risk. It's how they're calculating margin requirements for futures trading now.


What is adjustable and non adjustable capital?

Exposure and turnover limits are available against both Non margin adjustable additional base capital (NMABC) and MABC, but as the name suggests, NMABC is not adjusted against margin requirements whereas MABC is used for meeting margin requirements. If a particular amount is payable as margin on a day, it is first adjusted against the MABC available. Balance margin, if any, is required to be paid in cash. To the extent that MABC is adjusted against margins, it will not be available for exposure/turnover purposes. The MABC available for exposure will therefore fluctuate daily depending on how much of it has been utilized against margins.


If the Federal Reserve Board decides there is a danger of inflation due to excessive speculation of the stock exchanges it may raise the margin requirements.?

MONETARY POLICY


If the Federal Reserve Board decides there is a danger of inflation due to excessive speculation of the stock exchanges it may raise the margin requirements?

MONETARY POLICY


The Federal Reserve Board decides there is a danger of inflation due to excessive speculation of the stock exchanges it may raise the margin requirements?

monetary policy


What is the continental margin margin?

the margin of the continental