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Same-Day Substitution

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Dictionary Says

Definition of 'Same-Day Substitution'

An offsetting change in a margin account, made over the trading day, that results in no overall change in the value of the account. When a same-day substitution is made, a margin call is not generated.
Investopedia Says

Investopedia explains 'Same-Day Substitution'

A same-day substitution happens when a rise in the market value of one margin security is offset by an equal decline in another.

Related Definitions

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    Initial Margin

    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 ...
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    • Offset

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