Trading Margin Excess

Filed Under » , , ,
Dictionary Says

Definition of 'Trading Margin Excess'

The funds that remain in a margin trading account that are available to use towards the purchase of a new position or the increase of an existing position. Traders and investors often take advantage of margin accounts that provide a leveraged amount of funds with which to trade or invest.
Investopedia Says

Investopedia explains 'Trading Margin Excess'

A margin account allows traders or investors the ability to purchase beyond the actual cash value of the account by utilizing leverage. For instance, a trader could have $10,000 cash in a trading account and be able to trade a value of $100,000 with a 10:1 leverage. The trading margin excess is the funding that is currently available to trade with. While margin allows traders and investors the opportunity to profit, caution must be used due to the potential to sustain catastrophic losses.

Related Definitions

Search results for

'Trading Margin Excess'

  • Series 7 Study Guide - Customer Accounts - Stock Price Changes and ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/stock-price-change-margin.asp
    ... 8.3 Trading Options; 8.4 Calls and Puts; 8.5 Closing ... deposited securities, then,
    is $1,000 ($500 excess equity divided by Reg T's 50% margin requirement ...

  • Series 7 Study Guide - Customer Accounts - Purchasing Additional ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/purchase-shares-margin.asp
    ... 8.3 Trading Options; 8.4 Calls and Puts; 8.5 Closing ... This resulted in no change for
    excess equity: which remains ... the credit balance - to bring the margin back to ...

  • Adding Alpha Without Adding Risk

    http://www.investopedia.com/articles/optioninvestor/06/addingalpha.asp
    ... That excess capital can be invested in US Treasury bonds or Treasury bills (whichever ...
    (For more insight, check out the Margin Trading tutorial.) Implementing ...

  • The Advantages Of SPAN Margin

    http://www.investopedia.com/articles/optioninvestor/02/091802.asp
    ... any excess margin value to other positions (new or existing) requiring margin. Futures
    exchanges predetermine the amount of margin required for trading a ...

  • Trading Is Timing

    http://www.investopedia.com/articles/trading/06/TradingisTiming.asp
    ... 100 points of leeway before he is margin called and ... 63 level but they kept falling,
    eventually trading all the ... was able to collect profits far in excess of his ...

  • Surveying Single Stock Futures

    http://www.investopedia.com/articles/optioninvestor/06/SingleStockFutures.asp
    ... of trading SSFs. Of course, had the market moved in the opposite direction, the
    investor easily could have experienced losses in excess of the margin deposit. ...

  • Understanding The Sharpe Ratio

    http://www.investopedia.com/articles/07/sharpe_ratio.asp
    ... Canada's long-dated real return bonds were trading as high ... x)) Now that we have
    calculated the excess return from ... the original capital and an early margin call ...

  • ITT Set For A Halloween Breakup

    http://stocks.investopedia.com/stock-analysis/2011/ITT-Set-For-A-Halloween-Breakup-ITT-XLS-XYL-MANT-ITW-AWK1028.aspx
    ... profits jumped 25% to $144 million for an impressive margin in excess of 13%. ... in
    this unit grew 7% to $49 million for a profit margin also close ... Trading Center. ...

  • Big Stocks Trading Below Book Value

    http://stocks.investopedia.com/stock-analysis/2009/Big-Stocks-Trading-Below-Book-Value-ZINC-TSO-VLO-KSWS-NKE0626.aspx
    ... One way to ensure a margin of safety is by ... The Book.) Let's focus on a few names
    trading for less ... can be a wonderful strategy to earn excess portfolio returns. ...

  • The Best Way To Borrow

    http://www.investopedia.com/articles/basics/07/financing-options.asp
    ... over, credit cards can carry exorbitant interest rate charges (increasingly in excess
    of 20 ... (To learn more about margin accounts and margin trading, see Margin ...

Related Articles

Trading Center
Partner Links