A margin requirement is the percentage of a security’s market value that must be deposited with a broker to buy or sell the security. A margin requirement is also known as a margin account requirement. The Federal Reserve Board regulates margin requirements for most publicly traded securities. The Board’s Regulation T stipulates that the minimum […]
What Is Margins In Stocks
Margins are essentially the difference between the cost of a security and the price at which it is sold. When an investor purchases a security, the margin requirement is the percentage of the purchase price that must be paid in cash. The remainder of the purchase price may be financed by the sale of securities. […]
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