Initial Margin

What does it Mean? The percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his or her own cash or marginable securities.

Also called the "initital margin requirement".
Investopedia Says... According to Regulation T of the Federal Reserve Board, the initial margin is currently 50%. This level is only a minimum and some brokerages require you to deposit more than 50%.

For futures contracts, initial margin requirements are set by the exchange.

Terms Related Links

Broker's Call
Buying Power
Call Loan
Call Loan Rate
Current Market Value - CMV
Federal Reserve Board - FRB
Leverage
Maintenance Margin
Margin
Margin Account
Margin Call
Minimum Margin
Regulation T

Terms Related Links
Margin Trading: What Is Buying On Margin? - Buying on margin consists of borrowing money from a broker to purchase stock. Find out how it happens here.

Surveying Single Stock Futures - These contracts allow for easier shorting, and provide more leverage and flexibility than stocks.

Margin Trading: The Advantages - If you pick the right investment, margin can dramatically increase your profit.

Leveraged Investment Showdown - Margin loans, futures and ETF options can all mean better returns, but which should you pick?

What are the minimum margin requirements for a short sale account?

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