What is the meaning of Margin requirement?

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Margin requirement is the margin requirement is the minimum amount the Federal Reserve Board, in Regulation T, requires you to deposit in a margin account before you can trade through that account. Currently this minimum, or initial margin, is $2, 000, or 50% of the purchase price of securities you buy on margin, or 50% of the amount that you receive for selling securities short. In addition, there'sa minimum maintenance requirement, typically 25% to 30% of the market value of the securities in the account, set by the New York Stock Exchange (NYSE), the National Association of Securities Dealers (NASD), and the individual brokerage firms.

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APABarry Goldsmith. (2010). margin requirement. Retrieved September 22, 2026, from http://smartdefine.org/margin_requirement/definitions/1157762
ChicagoBarry Goldsmith. 2010. "margin requirement" http://smartdefine.org/margin_requirement/definitions/1157762 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, margin requirement, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/margin_requirement/definitions/1157762>.
MLABarry Goldsmith. "margin requirement" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/margin_requirement/definitions/1157762>