Types of Margins

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Initial Margin: A margin is cash or marketable securities deposited by an investor with his or her broker to initiate a transaction



Maintenance Margin: The minimum amount of margin required to hold outstanding positions.



Margin Call: A call issued by the broker to deposit additional funds, when the initial margin deposited falls below maintenance margin requirements.

 

[rosemarry2]

Initial Margin: A margin is cash or marketable securities deposited by an investor with his or her broker to initiate a transaction



Maintenance Margin: The minimum amount of margin required to hold outstanding positions.



Margin Call: A call issued by the broker to deposit additional funds, when the initial margin deposited falls below maintenance margin requirements.

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