Excess Margin Deposit

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Dictionary Says

Definition of 'Excess Margin Deposit'

Funds deposited in a trading account beyond what is required to fund basic margin requirements. The total balance on the account equals excess margin deposits plus margin. Investors can typically open an account and start trading with only a percentage of the total security value deposited. This is called trading on margin.
Investopedia Says

Investopedia explains 'Excess Margin Deposit'

In the forex market, an excess margin deposit may arise due to a currency trade returning to profitability after the trader has pumped in additional margin because of an earlier margin deficiency. It can also arise through a currency trade becoming significantly profitable shortly after initiation.

Traders may withdraw excess margin deposits if they reach a significant level, since excess capital in margin accounts pays little or no interest. However, nominal amounts of excess margin deposits may be left in the trading account as a cushion against margin calls triggered by adverse price movements.

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'Excess Margin Deposit'

  • The Advantages Of SPAN Margin

    http://www.investopedia.com/articles/optioninvestor/02/091802.asp
    ... Buying options outright typically does not require any deposit of margin because ...
    move for one particular open position, it applies any excess margin value to ...

  • Series 7 Study Guide - Customer Accounts - Stock Price Changes and ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/stock-price-change-margin.asp
    ... $500) Excess Equity. ... deposit in this event; however, it does require him to deposit
    at least ... In fact, the 50% margin requirement is an initial requirement - the ...

  • Series 7 Study Guide - Customer Accounts - Purchasing Additional ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/purchase-shares-margin.asp
    ... This resulted in no change for excess equity: which remains ... Your client would need
    to deposit $500 in cash ... to the credit balance - to bring the margin back to ...

  • Surveying Single Stock Futures

    http://www.investopedia.com/articles/optioninvestor/06/SingleStockFutures.asp
    ... Of course, had the market moved in the opposite direction, the investor easily
    could have experienced losses in excess of the margin deposit. ...

  • Bank Failure: Will Your Assets Be Protected?

    http://www.investopedia.com/articles/stocks/08/sipc-fdic-bank-failure.asp
    ... The excess coverage maintained by each brokerage firm is ... not directly use an
    individual's deposit to make ... client's securities to collateralize a margin loan to ...

  • Series 7 Study Guide - Customer Accounts - Special Memorandum ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/special-memorandum-account.asp
    ... (SIPC); 9.15 The Federal Deposit Insurance Corporation ... If he chooses the latter and
    writes a check against his margin account for $100, this ... $400 Excess Equity. ...

  • Series 7 Study Guide - Securities Markets - The Federal Reserve ...

    http://www.investopedia.com/exam-guide/series-7/securities-markets/federal-reserve-board.asp
    ... After all, the bank makes money by taking that deposit and reinvesting it in ... policy
    is intended to prevent or curb inflation by taking excess money out of the ...

  • Series 7 Study Guide - Risk and Tax Considerations - Stock ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/stock-classification.asp
    ... (SIPC); 9.15 The Federal Deposit Insurance Corporation ... 10.13 Purchasing Additional
    Shares On Margin; 10.14 Special Memorandum ... to provide returns in excess of the ...

  • Jack Henry Impressively Stable And Profitable

    http://stocks.investopedia.com/stock-analysis/2011/Jack-Henry-Impressively-Stable-And-Profitable-JKHY-FISV-FIS-ONB-GABC0825.aspx
    ... debit card and credit card transactions, bill payment, remote deposit capture and ...
    quite profitable, as evidenced by the recent net margin in excess of 14%. ...

  • CFA Level 1 Study Guide - Macroeconomics - The Banking System ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/banking-system.asp
    ... 15.18 Eurodollar Time Deposit Markets; 15.19 Characteristics of Forward Rate Agreements ...
    Forwards; 15.22 Futures Markets Margin; 15.23 The Futures Trade Process; ...

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