Dictionary Home »
Invest » excess margin
excess margin investment & finance definition
The
amount of money in a customer’s brokerage account that is above the minimum
required amount. If a customer’s holdings decline in value, the excess margin
helps prevent the customer from receiving a margin call, which directs him or
her to deposit more money into the account. If an account is required to have a
margin of $20,000 and actually has $30,000, then the excess margin is $10,000.
See excess margin in Wall Street Words
Learn more about excess margin