Sentences with phrase «initial margin requirement»
The phrase "initial margin requirement" refers to the minimum amount of money or collateral that an investor must deposit when they start trading with borrowed funds, typically in a margin account. It acts as a form of insurance or security for the lender in case the investor's trades result in losses. In simpler terms, it's the initial payment or deposit needed to begin trading with borrowed money. Full definition
They can also walk you through initial margin requirements for your brokerage account and a whole load more.
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The two will improve volatility by implementing stricter - than - usual risk - management safeguards such as initial margin requirements between 35 and 40 percent.
Initial margin requirement on long stock (50 % of long stock position).
This is the so - called initial margin requirement, and it effectively allows you to control investments worth twice as much as you could otherwise afford.
A trader opens a margin account with initial margin requirement as 8 % and minimum margin requirement as 4 %.
Furthermore, the futures initial margin requirement is typically lower than the margin required in a stock market.
Initial margin requirement on short stock (minimum of 50 % of the short stock market value plus sale proceeds, please see above for short stock requirements).
The cut off times for the deposit and withdrawals of cash to cover initial margin requirements in ECS are as follows.
Hedger / member initial margin requirements for all products are set at 100 % of the maintenance margin requirement for a given product.
For example, the current initial margin requirement for July soybeans is $ 4,590.
The current total initial margin requirement for the July soybean / November soybean spread mentioned above is $ 2,700.
During periods of high market volatility, the exchanges may increase initial margin requirements to any level they deem appropriate, and brokers may decide to increase initial margin levels above those required by law.
Before you proceed, you must understand initial margin requirements and maintenance margin requirements.
Speculative («Spec») / non-member initial margin requirements for all products are set at 110 % of the maintenance margin requirement for a given product.
CME CORE is an interactive margin calculator that enables users to calculate and evaluate initial margin requirements for all CME Group Products, and execute OTC efficiency analysis through additional analytics.
The intraday initial margin requirement for the CME bitcoin futures («BTC») has been set at 80 percent, that same as is required for CBOE futures («XBT»).
Initial margin requirement on short stock (minimum of 50 % of the short stock market value plus sale proceeds, please see above for short stock requirements) + the in the money amount of the short options.
Beginning in October, 2012 and ending in March, 2013, initial margin requirements are $ 2,970.
If the balance in the account falls below the maintenance margin level, they will receive a margin call to replenish the account balance to meet the initial margin requirement.
Every trader needs to have an amount equal to the initial margin requirement in their account balance in order to hold a futures position past the closing time of that market.
Once a trader meets the initial margin requirement, they are required to maintain the maintenance margin level until the position is closed.
The broker has an initial margin position requirement to open the position, if the price moves against me on a particular day (past the initial margin requirement) the broker gives me until 2 pm the following day to deposit the funds required for the additional margin.
At this point, a margin call will be made and the trader will have to deposit a variable margin amount of $ 800 to keep the account balance equal to initial margin requirement.
Initial margin is the percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his own cash or marginable securities; it is also called the initial margin requirement.
In most cases, for equity securities, the initial margin requirement is 50 %.
For futures contracts, initial margin requirements are set by the exchange.
To use a margin account, an investor needs to post a certain amount of cash, securities or other collateral, known as the initial margin requirement.
Initial margin requirements are not the same as maintenance margin requirements, which also may be increased or decreased based on market volatility.
For futures contracts, the exchanges set the initial margin requirements, but often it is as low as 5 % or 10 % of the contract to be traded.
This initial margin requirement would give the investor a 20x leverage factor.
If the investor opens a margin account and deposits an the initial margin requirement of $ 50,000, he would then have a total purchasing power of $ 100,000.
Once you meet the minimum or initial margin requirements, you have another requirement.
For example, if a broker has a 50 % initial margin requirement, you can buy twice as much stock.
You'll also have to meet the initial margin requirements.
The initial rate for a security, i.e. the initial margin requirement, is the percentage of cash or marginable securities needed in your account against the total purchase price of a margin eligible security.
But if the value of the underlying drops, as it always could, the main risk you face is losing your premium, an amount that's usually much smaller than the initial margin requirement.
Every time you perform a new trade, part of the account balance in the margin account is put aside as the initial margin requirement of the trade.
Each time you execute a new trade, a certain percentage of the account balance in the margin account will be set aside as the initial margin requirement for the new trade.
The maximum exposure is not limited to the amount of the initial margin, however the initial margin requirement is calculated based on the maximum estimated change in contract value within a trading day.
Futures account intraday margining for all products except bitcoin is 50 % of initial margin requirements.
If the initial margin rate is 20 % of the nominal value, then the customer's initial margin requirement would be $ 4,290.
The Initial Margin requirement is established by the Futures exchange, in contrast to other securities» Initial Margin (which is set by the Federal Reserve in the U.S. Markets).
Because margin makes use of qualifying securities as collateral, you can borrow money to meet the initial margin requirements of a transaction.
When you're dealing with large sums of money, say borrowing money from a broker to invest in forex, it's easy to become the victim of fear or greed because all you have to do to enter a market is meet an initial margin requirement to build up your trade and control a large amount of money.
If, for example, you purchased one 30 - year U.S. Treasury contract, your cost would be equal to the initial margin requirement of $ 2,700.
The initial margin requirement for the short put or short call, whichever is greater, plus the premium of the other option.
If the market value of stock held as collateral increases after you have met the initial margin requirement, your available credit may increase.
In addition to the initial margin requirements, we require you to maintain a minimum amount of equity in your account to collateralize your current loans and obligations.