margin outline

Initial margin requirement

·        A.k.a. Reg T requirement

·        Amt customer must deposit when borrowing to buy stock

·        Deposit 50% of market price when buying or selling short

Long margin account,long account

·        Debit balance, remaining balance after Reg T paid

·        Pay interest for borrowing

Short margin account,short account

·        Short stock

·        Customer doesn’t own stock

·        Customer has to borrow stock to short stock

·        Credit receipt=Credit balance=Deposit $ + proceeds