Sentences with phrase «initial margin money»

This type of margin money is called the initial margin money, and minimum margin money is the fixed minimum amount that has to stay in the trader's margin account throughout the trade over and above the difference between the value of the securities and the loan.

So, the trader needs to deposit 8 % of $ 15,550 = $ 1,244 into the margin account as initial margin money.

The initial margin money amount may keep on reducing in a trader's account during the life of the trade due to his losses, but it has to remain above the minimum margin money requirement.

Initial Margin Money: As soon as the margin account is opened, the trader needs to deposit some money into the account before he starts trading on margin.

For instance, for trading gold, the initial margin money is $ 3200 which is equal to 10 % of one trading unit (10 gm) of gold.

Not exact matches

If a customer's equity in any futures position drops to, or under, the maintenance performance bond level, a «performance bond call» is issued for the amount of money required to restore the customer's equity in the account to the initial margin level.

If you write a one - lot S&P 500 call credit spread, which has the near leg at about 15 % out of the money with three months until expiry, you will get charged approximately $ 3,000 - $ 4,000 in initial SPAN margin requirements.

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.

A margin account with a sweep preference of Money Market Fund will be subject to our general policy, which requires the deposit in cash or collateral on initial transactions of 50 % of the value of the marginable security as prescribed under Regulation T of the Board of Governors of the Federal Reserve System.

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.

Unlike margin in the stock market, which is a loan from a broker to the client based on the value of their current portfolio, margin in the futures sense refers to the initial amount of money deposited to meet a minimum requirement.

I currently used 2 000 $ of my margin money to participate in the initial public offering of Horizons Gold Yield Fund (HGY.UN).

If the price decreases by a significant amount it is possible for Bob to lose even more money than he initially deposited for the initial margin.

If Bob suffers a loss or a series of losses that deplete his initial margin to an amount lower than the maintenance margin — the lowest amount of money the broker allows Bob's account to reach before requiring Bob to replenish his account — Bob will receive a margin call from his broker, telling him to deposit the sufficient amount of funds to return him to the initial margin amount.