initial margin

Definition of "initial margin"
  1. The money provided by customers as security to assure the execution of a contract when a position is first established in the futures market
How to use "initial margin" in a sentence
  1. The investor was asked to provide an initial margin to secure the futures contract.
  2. The brokerage firm required an initial margin to establish the investors' market position.
  3. In the futures trading, a higher initial margin was demanded due to market volatility.

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