maintenance margin

maintenance margin
The minimum level at which the equity in a futures account must be maintained. If the equity in an account falls below this level, a margin call will be issued, and funds must be added to bring the account back to the initial margin level. The maintenance margin level generally is 75% of the initial margin requirement. The CENTER ONLINE Futures Glossary
————
The dollar amount required to be kept at the OCC throughout the life of an option contract; percentage of the dollar amount of securities that must always be kept as margin. Bloomberg Financial Dictionary
————
See maintenance performance bond. Chicago Mercantile Exchange Glossary
————
An alternative method of margining often used in the United States. When a position is opened, initial margin is called in the usual way and is credited to a maintenance margin account. However, variation margin debits and credits are not payable/paid daily but are debited and credited directly against the maintenance margin account. When the balance in the account falls below a predetermined level (normally around two thirds of the initial margin payment), the customer must fund the account back up to the initial margin level. Such a system is also sometimes operated by brokers in the UK for their customers. Dresdner Kleinwort Wasserstein financial glossary
————
The minimum margin which an investor must keep on deposit in a margin account at all times. Exchange Handbook Glossary

* * *

   The lowest balance of funds that a clearing house or brokerage firm will allow a counterparty, or the person on the other side of a deal, when trading on margin.
   ► See also Margin, Margin Trading.

Financial and business terms. 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Maintenance Margin — The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and NASD, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the… …   Investment dictionary

  • Maintenance margin requirement — требование минимальной суммы, которую клиент должен иметь у своего брокера после вычета других гарантийных депозитов. См. также: Биржевая маржа Финансовый словарь Финам …   Финансовый словарь

  • Maintenance margin requirement — A sum, usually smaller than but part of the original margin, which must be maintained on deposit at all times. If a customer s equity in any futures position drops to, or under, the maintenance margin level, the broker must issue a margin call… …   Financial and business terms

  • maintenance margin requirement — A sum, usually smaller than but part of the original margin, that must be maintained on deposit at all times. If a customer s equity in any futures position drops to or below, the maintenance margin level, the broker must issue a margin call for… …   Financial and business terms

  • maintenance margin — The minimum margin required in a brokerage account by a particular exchange or brokerage firm …   Big dictionary of business and management

  • maintenance margin (performance bond) — A sum, usually smaller than the initial performance bond, which must remain on deposit in the customer s account for any position. A drop in funds below this level requires a deposit back to initial margin levels. See performance bond call …   Financial and business terms

  • margin payment — Under Title 11 U.S.C. Section 101: (38) The term margin payment means, for purposes of the forward contract provisions of this title, payment or deposit of cash, a security or other property, that is commonly known in the forward contract trade… …   Glossary of Bankruptcy

  • Margin (finance) — For the 2011 film, see Margin Call. In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their broker or an exchange). This risk can… …   Wikipedia

  • margin call — A call from a clearinghouse to a clearing member, or from a brokerage firm to a customer, to bring margin deposits up to a required minimum level. Chicago Board of Trade glossary A call from the clearinghouse to a clearing member ( variation… …   Financial and business terms

  • Margin call — A demand for additional funds because of adverse price movement. Maintenance margin requirement, security deposit maintenance * * * margin call margin call ➔ call2 * * *    A call made by the clearing house or broker to a counterparty whose… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”