MARGIN REQUIREMENT
\mˈɑːd͡ʒɪn ɹɪkwˈa͡ɪ͡əmənt], \mˈɑːdʒɪn ɹɪkwˈaɪəmənt], \m_ˈɑː_dʒ_ɪ_n ɹ_ɪ_k_w_ˈaɪə_m_ə_n_t]\
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a security's value percentage allowed to be collateral for a purchase financing loan. the margin requirement is 50 percent In the US of the bonds or shares value. For options, the premium of the underlying asset's value varies plus 10 to 20 percent. This is known as an option margin.
By Henry Campbell Black
Word of the day
Snake's-head
- Guinea-hen flower; -- so called in England because its spotted petals resemble the scales of a snake's head.