Remargining
Definition of 'Remargining'The process of bringing an account up to minimum equity standards by depositing more cash or equity. This typically occurs after the account holder has received a margin call.When a stock is purchased on margin in a margin account, the account holder is required to maintain certain levels of equity in that account. When these requirements are not met, the brokerage firm will require that additional cash or securities be deposited to bring the account up to minimum equity levels. |
|
Investopedia explains 'Remargining'When an individual purchases stock on margin, he or she must maintain equity in the account of up to 50% of the total value of the securities margined, or borrowed. If the stock should decline in value, the brokerage firm may issue a margin call, which is essentially a demand for the account owner to boost the equity position to the minimum requirement. When a person does this, he or she is said to be remargining the account. |
Related Definitions
Articles Of Interest
-
How Does Your Margin Grow?
Risk-management tool SPAN margin boosts profitability prospects by helping to determine when to exit a trade. -
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 might put down 50% of the value of a purchase and borrow the rest from ... -
What is the difference between leverage and margin?
In financial terms, leverage is reinvesting debt in an effort to earn greater return than the cost of interest. When a firm uses a considerable proportion of debt to finance its investments, ... -
Margin Trading
Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
How To Outperform The Market
Active trading is an investing style that aims to beat the market. Find out how it works, and whether it will work for you. -
Reinvesting Capital Gains In Leveraged Portfolios
Don't get forced into action. Learn how to plan properly to avoid making rash decisions. -
What happens if I cannot pay a margin call?
Minimum margin is the amount of funds that must be deposited with a broker by a margin account customer. With a margin account, you are able to borrow money from your broker to purchase stocks ... -
Margin
Find out exactly what margin is and why it's important. -
Margin Call
Find out why a margin call is so important to investors.
Free Annual Reports