margin requirement investment & finance definition
The
minimum amount of money that a client must have on deposit, either in cash or
approved securities, in a margin account at a brokerage office. Margin
requirements for stock trading are governed by the Federal Reserve through
Regulation T. Generally, investors are required to have a minimum margin of 50
percent of the purchase price of securities or 50 percent of the proceeds of
short sales. Also called initial margin.
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