Margin Loan Availability


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.

BREAKING DOWN '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.

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  1. What is a margin account?

    A margin account is an account offered by brokerages that allows investors to borrow money to buy securities. An investor ... Read Full Answer >>
  2. Why do you need a margin account to short sell stocks?

    The reason that margin accounts and only margin accounts can be used to short sell stocks has to do with Regulation T, a ... Read Full Answer >>
  3. How are the interest charges calculated on my margin account?

    One way that investors borrow funds from brokerages is through margin accounts; it is these interest charges that allow them ... Read Full Answer >>
  4. How is margin interest calculated?

    Before running a calculation you must first find out what rate your broker-dealer is charging to borrow money. The broker ... Read Full Answer >>
  5. Can mutual funds use leverage?

    Traditionally, mutual funds have not been considered leveraged financial products. However, a number of new products have ... Read Full Answer >>
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    Hedge funds use several forms of leverage to chase large returns. They purchase securities on margin, meaning they leverage ... Read Full Answer >>

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