maintenance margin

However, exchange rules do not allow these transfers to be used for maintenance margin calls.

But most brokerages have maintenance margins of 35 percent on all stocks.

The point is, let's say the maintenance margin requirement is 25%.

If he can't do that, the broker will start selling the trader's securities until the maintenance margin is once again attained.

To translate that into Wall Street jargon, the brokers require a "maintenance margin" of 30 percent.

The table below lists some of the more popular E-micro contracts, with the initial and maintenance margin required by the issuing exchange.

The rule increases day trading buying power to up to 4 times a pattern day trader's maintenance margin excess.

The variation margin or maintenance margin is not collateral, but a daily payment of profits and losses.

So the maintenance margin requirement uses the variables above to form a ratio that investors have to abide by in order to keep the account active.

A bear put spread is simply the lower side of a short iron condor and has virtually identical initial and maintenance margin requirements.

The minimum margin requirement, sometimes called the maintenance margin requirement, is the ratio set for:

Maintenance margin A set minimum margin per outstanding futures contract that a customer must maintain in his margin account.

A margin call may be issued when the value of a trader's margin account falls below a preset limit known as the maintenance margin.

With all LIFFE contracts, the maintenance margin level is set at the initial margin level.

As the margin account falls below a particular threshold (the maintenance margin level), it has to be topped up with additional payments known as variation margin.

Prudential maintenance margin percentages required for carrying an individual stock should be significantly higher than the percentage margin required for a futures contract on a stock index.

The seller can take only 50 from the margin account, which cannot fall below 150, the maintenance margin level; the other 50 comes in the form of a variation margin payment.

Some U.S. exchanges also use the term "maintenance margin", which in effect defines by how much the value of the initial margin can reduce before a margin call is made.

In addition to Initial Margin and Maintenance Margin requirements, the SMA ledger is used to lock in unrealized gains that augment the client's buying power.

The initial margin on stocks is 50 percent, meaning the investor must put up at least half cash; the "maintenance margin," before the investor gets a call to put up more money, is about 30 percent.

The amendments require that equity and maintenance margin be deposited and maintained in customer accounts that engage in a pattern of day trading in amounts sufficient to support the risks associated with such trading activities.