Phrases with «margin deposit»

A margin deposit refers to the amount of money that an investor needs to put down when borrowing money to buy stocks or other investments. It acts as collateral or a form of security for the lender. The margin deposit is typically a percentage of the investment's value, and it helps ensure that the investor will repay the borrowed funds. Full definition

Sentences with «margin deposit»

  • If the futures value moves too far in the wrong direction, the trader may be required to provide additional money to maintain the required level of margin deposit. (pocketsense.com)
  • Although the seller of an options contract is required to deposit margin to reflect the risk of its obligation, he or she may lose many times his or her initial margin deposit. (nfa.futures.org)
  • To do this would require the suitable margin deposit for a Crude futures contract because you have unlimited risk, assuming the option is uncovered (naked). (altavest.com)
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