Margin requirement

Margin requirement,

Definition of Margin requirement:

  1. Percentage of a securitys value that may be used as a collateral for a loan to finance its purchase. In the US the margin requirement is 50 percent of the value of the bonds or shares, for options it varies between the premium plus 10 to 20 percent of the underlying assets value and is called option margin.

Meaning of Margin requirement & Margin requirement Definition