Margin Loan Availability

AAA

DEFINITION of 'Margin Loan Availability'

1. The dollar amount in an existing margin account that is currently available for purchasing securities. For new accounts, this represents the percentage value of the current balance that is available for future margin purchases.

2. The dollar amount available for withdrawal from an account with existing marginable positions being used as collateral.

INVESTOPEDIA EXPLAINS 'Margin Loan Availability'

The margin loan availability will change daily as the value of margin debt (which includes purchased securities) changes, but it may not reflect pending trades that are in between the trade date and the settlement date.

If the margin loan availability amount in an investor's account becomes negative, the investor may be due for a margin call or formal request to sell some of the marginable securities.

RELATED TERMS
  1. Trading Margin Excess

    The funds that remain in a margin trading account that are available ...
  2. Marginal Cost Of Funds

    The incremental cost of borrowing more money to fund additional ...
  3. Call Loan

    A loan provided to a brokerage firm and used to finance margin ...
  4. Leverage

    1. The use of various financial instruments or borrowed capital, ...
  5. Margin

    1. Borrowed money that is used to purchase securities. This practice ...
  6. Buying Power

    The money an investor has available to buy securities. In a margin ...
Related Articles
  1. Investing Basics

    Finding Your Margin Investment Sweet ...

  2. Options & Futures

    Should Your Options Go Naked?

  3. Trading Strategies

    What is a margin account?

  4. Trading Strategies

    How are the interest charges calculated ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center