Deposit

What Does Deposit Mean?
1. A transaction involving a transfer of funds to another party for safekeeping.

2. A portion of funds that is used as security or collateral for the delivery of a good.

Investopedia explains Deposit
1. This type of deposit is identical to the money an investor transfers into a bank's savings or checking accounts.

2. Some contracts require a percentage of funds to be transferred before delivery as an act of good faith. An example is the initial margin deposit required for entering into a new futures contract.

Related Terms

3-6-3 Rule
Core Deposits
Down Payment
Forward Contract
Futures Contract
Layaway
Margin
Savings Account
SEC Form S-4EF
SEC Form S-4EF
Security Deposit
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A Primer On Managed Futures - Their inverse correlation with stocks and bonds make these alternative investments worth getting to know.

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