Liquidation Margin

Filed Under » , , , ,
Dictionary Says

Definition of 'Liquidation Margin'

Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds a long position, the liquidation margin is equal to what the investor or trader would retain if the position was closed. If an investor or trader has a short position, the liquidation margin is equal to what the investor or trader would owe to purchase the stock or other trading instrument.
Investopedia Says

Investopedia explains 'Liquidation Margin'

Liquidation margin applies to investors or traders who use margin (leverage) to increase the potential profit of a trade. When the equity of a margin account falls below the liquidation margin level requirement, the broker may automatically close any open positions in the account.
Search results for

'Liquidation Margin'

  • What does it mean when the shares in my account have been ...

    http://www.investopedia.com/ask/answers/06/liquidatedaccount.asp
    ... An account liquidation occurs when the holdings of an account are sold off by ... majority
    of cases, this will deal with problems arising with margin requirements. ...

  • Series 7 Study Guide - Customer Accounts - Margin Accounts ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/margin-account.asp
    ... The funds can come from a deposit or from cash dividends, earned interest or
    liquidation of securities in the account. Margin Account Restrictions There are ...

  • Take On Risk With A Margin of Safety

    http://www.investopedia.com/articles/financial-theory/08/margin-of-safety.asp
    ... to buy assets that Mr. Market would sell to him with a 50% margin of safety ... look
    for what he called net-nets, or companies trading below their liquidation values ...

  • Find Investment Quality In The Income Statement

    http://www.investopedia.com/articles/stocks/06/advincome.asp
    ... out liquidation (LIFO) rather than first in, first out liquidation (FIFO) valuation ...
    Margin and Cost Analysis In the income statement, the absolute numbers don ...

  • Stop Hunting With The Big Forex Players

    http://www.investopedia.com/articles/forex/06/StopHunting.asp
    ... Trading without stops in the currency market means that the trader will inevitably
    face forced liquidation in the form of a margin call. ...

  • Financial Statements: Conclusion | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements10.asp
    ... Gross margin trends. ... Recurring Gains - These include gains due to the sale of a business,
    one-time gains due to acquisitions, gains due to liquidation of older ...

  • Warren Buffett: How He Does It

    http://www.investopedia.com/articles/01/071801.asp
    ... A high profit margin indicates the company is executing its business well, but ... value
    is usually higher (and more complicated) than its liquidation value - what ...

  • Forex Trading Rules: Logic Wins; Impulse Kills | Investopedia

    http://www.investopedia.com/university/forex-rules/rule2.asp
    ... approach preserves his capital, so that he may trade another day, while the reckless,
    impulsive actions of Trader A lead to a margin call liquidation. ...

  • The Credit Crisis And The Carry Trade

    http://www.investopedia.com/articles/forex/09/credit-crisis-carry-trade.asp
    ... concept, check out the Margin Call section of our Margin Trading Tutorial ... under tight
    credit conditions, as speculators resort to panic liquidation and rush to ...

  • CFA Level 1 Study Guide - Assets - Causes a Decline in LIFO ...

    http://www.investopedia.com/exam-guide/cfa-level-1/assets/causes-decline-lifo-reserve.asp
    ... Market Structure; 12.5 Exchange Market Characteristics; 12.6 Short Selling;
    12.7 Buying on Margin and Maintenance Margin; 12.8 Effects ...

Related Articles

Partner Links