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
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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
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See maintenance performance bond. Chicago Mercantile Exchange Glossary
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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
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The minimum margin which an investor must keep on deposit in a margin account at all times. Exchange Handbook Glossary

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   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.

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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

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