One caveat to buying on margin is that you’ll also have a maintenance margin requirement, which requires you to maintain a ...

This includes agreeing to margin maintenance requirements and the possibility of margin calls (more on these later). Finally, an investor must deposit a minimum of $2,000 in order to open their ...

Having a low margin requirement allows you to use high leverage, but you don’t have to. You can simply trade at a smaller size and follow your risk management plan.

There's another risk: A decline in your investments can lead to an account falling below the broker's maintenance margin (the minimum balance, in either cash or securities, that you're required to ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The margin requirement should theoretically be the market value of the account. However, under normal conditions, an account cannot be closed out at the instant a participant defaults at the ...

This geopolitical shift is having a direct impact on financial institutions, most notably through increased margin requirements driven by heightened market volatility. As firms grapple with these ...

The Federal Reserve established margin accounts rules under Regulation T which cover how broker-dealers can extend credit. Every brokerage firm is required to monitor their margin accounts ...