margin requirement |
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Definition
Percentage of a security's value that may be used as a collateral for a loan to finance its purchase. In the US the margin requirement is 50 percent of the value of the bonds or shares, for options it varies between the premium plus 10 to 20 percent of the underlying asset's value and is called option margin.
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margin requirement is in the Investing and Securities & Futures Trading subjects.
margin requirement appears in the definition of the following term: margin account
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