Same-Day Substitution


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.

BREAKING DOWN '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.

  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  3. Margin

    1. Borrowed money that is used to purchase securities. This practice ...
  4. Margin Call

    A broker's demand on an investor using margin to deposit additional ...
  5. Leverage

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

    The percentage of the purchase price of securities (that can ...
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