449:. The maintenance requirement is the minimum amount of collateral required to keep the position open and is generally lower than the initial requirement. This allows the price to move against the margin without forcing a margin call immediately after the initial transaction. When the total value of the collateral dips below the maintenance margin requirement, the position holder must pledge additional collateral to bring their total balance back up to or above the initial margin requirement. On instruments determined to be especially risky, however, either regulators, the exchange, or the broker may set the maintenance requirement higher than normal or equal to the initial requirement to reduce their exposure to the risk accepted by the trader. For speculative futures and derivatives clearing accounts
761:, representing the amount of their trading capital that is being held as margin at any particular time. Traders would rarely (and unadvisedly) hold 100% of their capital as margin. The probability of losing their entire capital at some point would be high. By contrast, if the margin-equity ratio is so low as to make the trader's capital equal to the value of the futures contract itself, then they would not profit from the inherent
406:, where the buyer has the right to require the seller to buy his 100 shares in Universal Widgets S.A. at 90¢. He receives an option premium of 14¢. The value of the option is 14¢, so this is the premium margin. The exchange has calculated, using historical prices, that the option value will not exceed 17¢ the next day, with 99% certainty. Therefore, the additional margin requirement is set at 3¢, and the investor has to post
307:, and using the cash as collateral. This has the effect of reversing any profit or loss made on the securities. The initial cash deposited by the trader, together with the amount obtained from the sale, serve as collateral for the loan. The net value—the difference between the cash amount and the value of loan security—is initially equal to the amount of one's own cash used. This difference has to stay above a
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immediately issues a "margin call", requiring the investor to bring the margin account back into line. To do so, the investor must either pay funds (the call) into the margin account, provide additional collateral, or dispose some of the securities. If the investor fails to bring the account back into line, the broker can sell the investor's collateral securities to bring the account back into line.
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243:, using the bought securities as collateral. This has the effect of magnifying any profit or loss made on the securities. The securities serve as collateral for the loan. The net value—the difference between the value of the securities and the loan—is initially equal to the amount of one's own cash used. This difference has to stay above a
271:. They had to deliver more money to their brokers or their shares would be sold. Since many individuals did not have the equity to cover their margin positions, their shares were sold, causing further market declines and further margin calls. This was one of the major contributing factors which led to the
431:
An investor is long 50 shares in
Universal Widgets Ltd, trading at 120 pence (£1.20) each. The broker sets an additional margin requirement of 20 pence per share, so £10 for the total position. The current liquidating margin is currently £60 "in favour of the investor". The minimum margin requirement
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For example, Jane sells a share of stock she does not own for $ 100 and puts $ 20 of her own money as collateral, resulting $ 120 cash in the account. The net value (the cash amount minus the share price) is $ 20. The broker has a minimum margin requirement of $ 10. Suppose the share price rises to $
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For example, Jane buys a share in a company for $ 100 using $ 20 of her own money and $ 80 borrowed from her broker. The net value (the share price minus the amount borrowed) is $ 20. The broker has a minimum margin requirement of $ 10. Suppose the share price drops to $ 85. The net value is now only
285:, "Was the Crash of 1929 Expected", all sources indicate that beginning in either late 1928 or early 1929, "margin requirements began to rise to historic new levels. The typical peak rates on brokers' loans were 40–50 percent. Brokerage houses followed suit and demanded higher margin from investors".
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If the cash balance of a margin account is negative, the amount is owed to the broker, and usually attracts interest. If the cash balance is positive, the money is available to the account holder to reinvest, or may be withdrawn by the holder or left in the account and may earn interest. In terms of
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for the loan. The broker usually has the right to change the percentage of the value of each security it will allow toward further advances to the trader, and may consequently make a margin call if the balance available falls below the amount actually utilised. In any event, the broker will usually
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The broker may at any time revise the value of the collateral securities (margin) after the estimation of the risk, based, for example, on market factors. If this results in the market value of the collateral securities for a margin account falling below the revised margin, the broker or exchange
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closed the day at $ 65. The exchange sets the additional margin requirement at $ 2, which the holder of a long position pays as collateral in his margin account. A day later, the futures close at $ 66. The exchange now pays the profit of $ 1 in the mark-to-market to the holder. The margin account
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If the maintenance margin changed to 25%, then the customer would have to maintain a net value equal to 25% of the total stock equity. That means that he or she would have to maintain net equity of $ 50,000 × 0.25 = $ 12,500. At what price would the investor get a margin call? For stock price
355:. This is possible, because the exchange is the central counterparty to all contracts, and the number of long contracts equals the number of short contracts. Certain other exchange traded derivatives, such as options on futures contracts, are marked-to-market in the same way.
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115. The net value is now only $ 5 (the previous net value of $ 20 minus the share's $ 15 rise in price), so, to maintain the broker's minimum margin, Jane needs to increase this net value to $ 10 or more, either by buying the share back or depositing additional cash.
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can be the cash deposited in the account or securities provided, and represents the funds available to the account holder for further share trading. On United States futures exchanges, margins were formerly called performance bonds. Most of the exchanges today use
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For instance, assume that an investor bought 1,000 shares of a company each priced at $ 50. If the initial margin requirement were 60%, then stock equity = $ 50 × 1,000 = $ 50,000 and leveraged dollars (or amount borrowed) = $ 50,000 × (100% − 60%) = $ 20,000.
780:(ROM) is often used to judge performance because it represents the net gain or net loss compared to the exchange's perceived risk as reflected in required margin. ROM may be calculated (realized return) / (initial margin). The annualized ROM is equal to
480:, March 27, 1980, is one such example. This situation most frequently happens as a result of an adverse change in the market value of the leveraged asset or contract. It could also happen when the margin requirement is raised, either due to increased
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who have offsetting futures contracts do not have to deposit collateral both for their short position and their long position. The exchange calculates the loss in a worst-case scenario of the total position. Similarly an investor who creates a
289:$ 5 (the previous net value of $ 20 minus the share's $ 15 drop in price), so, to maintain the broker's minimum margin, Jane needs to increase this net value to $ 10 or more, either by selling the share or repaying part of the loan.
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Margin lending became popular in the late 1800s as a means to finance railroads. In the 1920s, margin requirements were loose. In other words, brokers required investors to put in very little of their own money, whereas today, the
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A margin account is a loan account with a broker which can be used for share trading. The funds available under the margin loan are determined by the broker based on the securities owned and provided by the trader, which act as
501:, is the ratio of (stock equity − leveraged dollars) to stock equity, where "stock equity" is the stock price multiplied by the number of shares bought and "leveraged dollars" is the amount borrowed in the margin account.
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or due to legislation. In extreme cases, certain securities may cease to qualify for margin trading; in such a case, the brokerage will require the trader to either fully fund their position, or to liquidate it.
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is now -£60 + £10 = -£50. In other words, the investor can run a deficit of £50 in his margin account and still fulfil his margin obligations. This is the same as saying he can borrow up to £50 from the broker.
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risk since any loss on the call is offset by a gain in the stock, and a large loss in the stock is offset by a gain on the put; in general, covered calls have less strict requirements than naked call writing.
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The seller of an option has the obligation to deliver the underlying security associated with the option when it is exercised. To ensure they can fulfill this obligation, they have to deposit collateral. This
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Sometimes, return on margin will also take into account peripheral charges such as brokerage fees and interest paid on the sum borrowed. The margin interest rate is usually based on the
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of selling, which will lead to other margin calls and so forth, effectively crashing an asset class or group of asset classes. The "Bunker Hunt Day" crash of the silver market on
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every day, so the current price is compared to the previous day's price. The profit or loss on the day of a position is then paid to or debited from the holder by the
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So if the stock price dropped from $ 50 to $ 26.67, then the investor would be called to add additional funds to the account to make up for the loss in stock equity.
311:, the purpose of which is to protect the broker against a rise in the value of the borrowed securities to the point that the investor can no longer cover the loan.
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is intended to cover a potential fall in the value of the position on the following trading day. This is calculated as the potential loss in a worst-case scenario.
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is a strategy offered by some brokers that provides 4:1 or 6+:1 leverage. This requires maintaining two sets of accounts, long and short.
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is the amount of collateral required to open a position. Thereafter, the collateral required until the position is closed is the
636:{\displaystyle \textstyle P=P_{0}{\frac {(1-{\text{initial margin requirement}})}{(1-{\text{maintenance margin requirement}})}}}
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futures and cleared derivatives, the margin balance would refer to the total value of collateral pledged to the CCP (
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769:. A conservative trader might hold a margin-equity ratio of 15%, while a more aggressive trader might hold 40%.
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is the value of a security's position if the position were liquidated now. In other words, if the holder has a
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may charge a premium or margin multiplier to exchange requirements. This is typically an additional 10%–25%.
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is equal to the premium that they would need to pay to buy back the option and close out their position.
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the holder poses for the counterparty. This risk can arise if the holder has done any of the following:
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Short selling refers to the selling of securities that the trader does not own, borrowing them from a
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For example, if a trader earns 10% on margin in two months, that would be about 77% annualized
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279:. However, as reported in Peter Rappoport and Eugene N. White's 1994 paper published in
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Rappoport, Peter; White, Eugene N. (March 1994). "Was the Crash of 1929 Expected".
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Margin requirements are reduced for positions that offset each other. For instance
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193:("Standard Portfolio Analysis of Risk") methodology, which was developed by the
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is the initial price of the stock. Using the same example to demonstrate this:
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14¢ (obtained from the sale) + 3¢ = 17¢ in his margin account as collateral.
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Margin buying refers to the buying of securities with cash borrowed from a
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is not collateral, but a daily payment of profits and losses. Futures are
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This article is about financial trading. For the economic theory, see
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521:(Current Market Value − Amount Borrowed) / Current Market Value = 25%
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Borrowed cash from the counterparty to buy financial instruments,
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721:{\displaystyle P=\$ 50{\frac {(1-0.6)}{(1-0.25)}}=\$ 26.66.}
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and other fees on the amount drawn on the margin account.
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Type of financial collateral used to cover credit risk
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If a margin call occurs unexpectedly, it can cause a
461:"Margin call" redirects here. For the 2011 film, see
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of up to 90 percent debt were not uncommon. When the
912:"Monetary-Policy Disasters of the Twentieth Century"
332:, this is the money needed to buy back; if they are
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886:"Blue Ocean Strategy & Finance: Margin Lending"
56:. Unsourced material may be challenged and removed.
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513:the stock equity would be (in this example) 1,000
336:, it is the money they can raise by selling it.
267:started to contract, many individuals received
259:) limits debt to 50 percent. During the 1920s
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169:Borrowed financial instruments to sell them
437:Initial and maintenance margin requirements
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116:Learn how and when to remove this message
796:that is, Annualized ROM = 1.1 - 1 = 77%
1810:Power reverse dual-currency note (PRDC)
1750:Constant proportion portfolio insurance
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231:) and or futures commission merchants.
379:offer alternative rules for U.S. and
197:in 1988, for calculating margins for
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1745:Collateralized debt obligation (CDO)
54:adding citations to reliable sources
813:Badla system (Indian stock markets)
275:, which in turn contributed to the
910:Cundiff, Kirby R. (January 2007).
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14:
562:Alternatively, one can calculate
2160:Electronic communication network
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489:Price of stock for margin calls
383:regulatory margin requirements.
41:needs additional citations for
1572:Year-on-year inflation-indexed
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623:maintenance margin requirement
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499:maintenance margin requirement
158:) to cover some or all of the
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2154:Multilateral trading facility
1582:Zero-coupon inflation-indexed
945:American Economic Association
792:Annualized ROM = (ROM +1) - 1
255:'s margin requirement (under
229:central counterparty clearing
2577:Returns-based style analysis
2373:Post-modern portfolio theory
2279:Security characteristic line
936:The American Economic Review
451:futures commission merchants
319:Types of margin requirements
282:The American Economic Review
2331:Efficient-market hypothesis
2235:Capital asset pricing model
2172:Straight-through processing
1785:Foreign exchange derivative
1177:Callable bull/bear contract
884:Ruby Day (26 August 2019).
195:Chicago Mercantile Exchange
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2148:Alternative Trading System
860:Special memorandum account
604:initial margin requirement
495:minimum margin requirement
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443:initial margin requirement
326:current liquidating margin
309:minimum margin requirement
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273:Stock Market Crash of 1929
245:minimum margin requirement
18:
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1686:Stock market index future
1000:
423:still holds only the $ 2.
2212:Arbitrage pricing theory
1805:Mortgage-backed security
1800:Interest rate derivative
1775:Equity-linked note (ELN)
1760:Credit-linked note (CLN)
2491:Initial public offering
2352:Modern portfolio theory
2247:Dividend discount model
2130:List of stock exchanges
1755:Contract for difference
1056:Risk-free interest rate
497:, sometimes called the
447:maintenance requirement
2379:Random walk hypothesis
1537:Forward Rate Agreement
844:x-Valuation Adjustment
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637:
146:has to deposit with a
2517:Market capitalization
2326:Dollar cost averaging
1765:Credit default option
1109:Employee stock option
818:Collateral management
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418:Futures contracts on
184:The collateral for a
65:"Margin" finance
2337:Fundamental analysis
2321:Contrarian investing
2284:Security market line
2189:Liquidity aggregator
2166:Direct market access
2077:Quantitative analyst
1719:Inflation derivative
1704:Commodity derivative
1676:Single-stock futures
1666:Normal backwardation
1656:Interest rate future
1497:Conditional variance
1003:Derivative (finance)
943:(1). United States:
914:. The Freeman Online
855:Repurchase agreement
656:
570:
555:= 20,000/750 = 26.67
402:An investor sells a
144:financial instrument
50:improve this article
2582:Reverse stock split
2527:Market manipulation
2451:Dual-listed company
2311:Algorithmic trading
2241:Capital market line
2043:Inter-dealer broker
1871:Business portal
1724:Property derivative
823:Credit default swap
753:Margin-equity ratio
142:that a holder of a
2622:Stock market index
2461:Efficient frontier
2400:Technical analysis
2358:Momentum investing
2180:(private exchange)
2070:Proprietary trader
2012:Shares outstanding
2002:Authorised capital
1729:Weather derivative
1714:Freight derivative
1696:Exotic derivatives
1616:Commodities future
1303:Intermarket spread
1066:Synthetic position
994:Derivatives market
828:Leverage (finance)
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150:(most often their
21:Margin (economics)
2683:Financial markets
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2471:Flight-to-quality
2223:Buffett indicator
1913:Financial markets
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1780:Equity derivative
1770:Credit derivative
1738:Other derivatives
1709:Energy derivative
1671:Perpetual futures
1552:Overnight indexed
1502:Constant maturity
1463:
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1410:Finite difference
1343:Protective option
846:related to Margin
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393:Enhanced leverage
388:Margin strategies
377:portfolio margins
367:Additional margin
257:Regulation T
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2587:Share repurchase
2299:Trading theories
2184:Crossing network
2142:Over-the-counter
1979:Restricted stock
1935:Secondary market
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528:- 20,000) / 1000
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2410:Value averaging
2405:Trend following
2390:Style investing
2385:Sector rotation
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1626:Dividend future
1621:Currency future
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1358:Vertical spread
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539:- 20,000) = 250
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2339:
2334:
2328:
2323:
2318:
2313:
2307:
2305:
2296:
2295:
2293:
2292:
2287:
2281:
2276:
2270:
2265:
2260:
2258:Earnings yield
2255:
2253:Dividend yield
2250:
2244:
2238:
2232:
2226:
2220:
2215:
2209:
2203:
2201:
2195:
2194:
2192:
2191:
2186:
2181:
2175:
2169:
2163:
2157:
2151:
2145:
2144:(off-exchange)
2139:
2138:
2137:
2132:
2121:
2119:
2118:Trading venues
2115:
2114:
2112:
2111:
2106:
2105:
2104:
2094:
2089:
2084:
2079:
2074:
2073:
2072:
2067:
2057:
2052:
2047:
2046:
2045:
2040:
2029:
2027:
2023:
2022:
2020:
2019:
2017:Treasury stock
2014:
2009:
2004:
1998:
1996:
1990:
1989:
1987:
1986:
1984:Tracking stock
1981:
1976:
1971:
1966:
1960:
1958:
1951:
1950:
1948:
1947:
1942:
1937:
1932:
1930:Primary market
1926:
1924:
1917:
1916:
1911:
1909:
1908:
1901:
1894:
1886:
1877:
1876:
1874:
1873:
1860:
1857:
1856:
1854:
1853:
1848:
1846:Municipal debt
1843:
1838:
1833:
1831:Corporate debt
1828:
1822:
1820:
1816:
1815:
1813:
1812:
1807:
1802:
1797:
1792:
1787:
1782:
1777:
1772:
1767:
1762:
1757:
1752:
1747:
1741:
1739:
1735:
1734:
1732:
1731:
1726:
1721:
1716:
1711:
1706:
1700:
1698:
1692:
1691:
1689:
1688:
1683:
1678:
1673:
1668:
1663:
1658:
1653:
1648:
1643:
1638:
1633:
1631:Forward market
1628:
1623:
1618:
1613:
1607:
1605:
1603:
1602:
1597:
1591:
1588:
1587:
1585:
1584:
1579:
1574:
1569:
1564:
1559:
1554:
1549:
1544:
1539:
1534:
1529:
1524:
1519:
1514:
1512:Credit default
1509:
1504:
1499:
1494:
1489:
1484:
1479:
1473:
1471:
1465:
1464:
1461:
1460:
1458:
1457:
1452:
1447:
1442:
1437:
1432:
1427:
1422:
1417:
1412:
1407:
1397:
1392:
1387:
1381:
1379:
1373:
1372:
1370:
1369:
1355:
1350:
1345:
1340:
1335:
1330:
1325:
1320:
1315:
1310:
1308:Iron butterfly
1305:
1300:
1295:
1290:
1285:
1280:
1278:Covered option
1275:
1270:
1265:
1260:
1255:
1250:
1244:
1242:
1236:
1235:
1233:
1232:
1227:
1222:
1217:
1216:Mountain range
1214:
1209:
1204:
1199:
1194:
1189:
1184:
1179:
1174:
1169:
1164:
1159:
1153:
1151:
1145:
1144:
1142:
1141:
1136:
1131:
1126:
1121:
1116:
1111:
1106:
1101:
1096:
1090:
1088:
1082:
1081:
1079:
1078:
1073:
1068:
1063:
1058:
1053:
1048:
1043:
1038:
1033:
1028:
1022:
1020:
1013:
1007:
1006:
1001:
998:
997:
992:
990:
989:
982:
975:
967:
959:
958:
925:
899:
875:
874:
872:
869:
868:
867:
862:
857:
852:
847:
840:
838:Margin at risk
835:
830:
825:
820:
815:
808:
805:
794:
793:
786:
785:
774:
771:
754:
751:
737:spread traders
732:
729:
717:
714:
711:
705:
702:
699:
696:
693:
688:
685:
682:
679:
676:
670:
667:
664:
661:
646:
628:
620:
617:
614:
609:
601:
598:
595:
587:
583:
579:
576:
557:
556:
550:
543:
533:
522:
490:
487:
458:
455:
438:
435:
434:
433:
429:
425:
424:
416:
412:
411:
400:
389:
386:
385:
384:
370:
364:
361:premium margin
356:
345:mark to market
337:
330:short position
320:
317:
297:Main article:
294:
291:
261:leverage rates
236:
233:
210:
209:Margin account
207:
186:margin account
182:
181:
174:
167:
124:
123:
38:
36:
29:
15:
13:
10:
9:
6:
4:
3:
2:
2705:
2694:
2691:
2689:
2688:Margin policy
2686:
2684:
2681:
2680:
2678:
2663:
2660:
2658:
2655:
2653:
2650:
2648:
2645:
2643:
2640:
2638:
2635:
2633:
2630:
2628:
2625:
2623:
2620:
2618:
2615:
2613:
2610:
2608:
2605:
2603:
2600:
2598:
2595:
2593:
2592:Short selling
2590:
2588:
2585:
2583:
2580:
2578:
2575:
2573:
2570:
2568:
2565:
2563:
2560:
2558:
2555:
2553:
2550:
2548:
2545:
2543:
2540:
2538:
2535:
2533:
2530:
2528:
2525:
2523:
2520:
2518:
2515:
2513:
2510:
2508:
2505:
2503:
2500:
2498:
2495:
2492:
2489:
2487:
2484:
2482:
2481:Greenspan put
2479:
2477:
2474:
2472:
2469:
2467:
2466:Financial law
2464:
2462:
2459:
2457:
2454:
2452:
2449:
2447:
2444:
2442:
2441:Cross listing
2439:
2437:
2434:
2432:
2429:
2428:
2426:
2424:Related terms
2422:
2416:
2413:
2411:
2408:
2406:
2403:
2401:
2398:
2396:
2395:Swing trading
2393:
2391:
2388:
2386:
2383:
2380:
2377:
2374:
2371:
2369:
2366:
2364:
2363:Mosaic theory
2361:
2359:
2356:
2353:
2350:
2348:
2347:Market timing
2345:
2343:
2340:
2338:
2335:
2332:
2329:
2327:
2324:
2322:
2319:
2317:
2314:
2312:
2309:
2308:
2306:
2304:
2297:
2291:
2288:
2285:
2282:
2280:
2277:
2274:
2271:
2269:
2266:
2264:
2261:
2259:
2256:
2254:
2251:
2248:
2245:
2242:
2239:
2236:
2233:
2230:
2227:
2224:
2221:
2219:
2216:
2213:
2210:
2208:
2205:
2204:
2202:
2200:
2196:
2190:
2187:
2185:
2182:
2179:
2176:
2173:
2170:
2167:
2164:
2161:
2158:
2155:
2152:
2149:
2146:
2143:
2140:
2136:
2135:Trading hours
2133:
2131:
2128:
2127:
2126:
2123:
2122:
2120:
2116:
2110:
2107:
2103:
2100:
2099:
2098:
2095:
2093:
2090:
2088:
2085:
2083:
2080:
2078:
2075:
2071:
2068:
2066:
2063:
2062:
2061:
2058:
2056:
2053:
2051:
2050:Broker-dealer
2048:
2044:
2041:
2039:
2036:
2035:
2034:
2031:
2030:
2028:
2024:
2018:
2015:
2013:
2010:
2008:
2007:Issued shares
2005:
2003:
2000:
1999:
1997:
1995:
1994:Share capital
1991:
1985:
1982:
1980:
1977:
1975:
1972:
1970:
1967:
1965:
1962:
1961:
1959:
1957:
1952:
1946:
1945:Fourth market
1943:
1941:
1938:
1936:
1933:
1931:
1928:
1927:
1925:
1923:
1918:
1914:
1907:
1902:
1900:
1895:
1893:
1888:
1887:
1884:
1872:
1867:
1862:
1861:
1858:
1852:
1849:
1847:
1844:
1842:
1839:
1837:
1834:
1832:
1829:
1827:
1826:Consumer debt
1824:
1823:
1821:
1819:Market issues
1817:
1811:
1808:
1806:
1803:
1801:
1798:
1796:
1795:Fund of funds
1793:
1791:
1788:
1786:
1783:
1781:
1778:
1776:
1773:
1771:
1768:
1766:
1763:
1761:
1758:
1756:
1753:
1751:
1748:
1746:
1743:
1742:
1740:
1736:
1730:
1727:
1725:
1722:
1720:
1717:
1715:
1712:
1710:
1707:
1705:
1702:
1701:
1699:
1697:
1693:
1687:
1684:
1682:
1679:
1677:
1674:
1672:
1669:
1667:
1664:
1662:
1659:
1657:
1654:
1652:
1649:
1647:
1644:
1642:
1639:
1637:
1636:Forward price
1634:
1632:
1629:
1627:
1624:
1622:
1619:
1617:
1614:
1612:
1609:
1608:
1606:
1601:
1598:
1596:
1593:
1592:
1589:
1583:
1580:
1578:
1575:
1573:
1570:
1568:
1565:
1563:
1560:
1558:
1555:
1553:
1550:
1548:
1547:Interest rate
1545:
1543:
1540:
1538:
1535:
1533:
1530:
1528:
1525:
1523:
1520:
1518:
1515:
1513:
1510:
1508:
1505:
1503:
1500:
1498:
1495:
1493:
1490:
1488:
1485:
1483:
1480:
1478:
1475:
1474:
1472:
1470:
1466:
1456:
1453:
1451:
1448:
1446:
1443:
1441:
1440:MC Simulation
1438:
1436:
1433:
1431:
1428:
1426:
1423:
1421:
1418:
1416:
1413:
1411:
1408:
1405:
1401:
1400:Black–Scholes
1398:
1396:
1393:
1391:
1388:
1386:
1383:
1382:
1380:
1378:
1374:
1367:
1363:
1359:
1356:
1354:
1353:Risk reversal
1351:
1349:
1346:
1344:
1341:
1339:
1336:
1334:
1331:
1329:
1326:
1324:
1321:
1319:
1316:
1314:
1311:
1309:
1306:
1304:
1301:
1299:
1296:
1294:
1291:
1289:
1286:
1284:
1283:Credit spread
1281:
1279:
1276:
1274:
1271:
1269:
1266:
1264:
1261:
1259:
1256:
1254:
1251:
1249:
1246:
1245:
1243:
1241:
1237:
1231:
1228:
1226:
1223:
1221:
1218:
1215:
1213:
1210:
1208:
1207:Interest rate
1205:
1203:
1202:Forward start
1200:
1198:
1195:
1193:
1190:
1188:
1185:
1183:
1180:
1178:
1175:
1173:
1170:
1168:
1165:
1163:
1160:
1158:
1155:
1154:
1152:
1150:
1146:
1140:
1137:
1135:
1132:
1130:
1129:Option styles
1127:
1125:
1122:
1120:
1117:
1115:
1112:
1110:
1107:
1105:
1102:
1100:
1097:
1095:
1092:
1091:
1089:
1087:
1083:
1077:
1074:
1072:
1069:
1067:
1064:
1062:
1059:
1057:
1054:
1052:
1049:
1047:
1046:Open interest
1044:
1042:
1039:
1037:
1034:
1032:
1029:
1027:
1026:Delta neutral
1024:
1023:
1021:
1017:
1014:
1012:
1008:
1004:
999:
995:
988:
983:
981:
976:
974:
969:
968:
965:
954:
950:
946:
942:
938:
937:
929:
926:
913:
906:
904:
900:
887:
880:
877:
870:
866:
865:Short selling
863:
861:
858:
856:
853:
851:
848:
845:
841:
839:
836:
834:
831:
829:
826:
824:
821:
819:
816:
814:
811:
810:
806:
804:
802:
801:broker's call
797:
791:
790:
789:
784:(ROM + 1) - 1
783:
782:
781:
779:
772:
770:
768:
764:
760:
752:
750:
747:
743:
738:
730:
728:
715:
709:
700:
697:
694:
683:
680:
677:
668:
662:
659:
651:
649:
618:
615:
599:
596:
585:
581:
577:
574:
565:
560:
554:
551:
548:
544:
542:
538:
534:
531:
527:
523:
520:
519:
518:
516:
512:
506:
502:
500:
496:
488:
486:
483:
479:
475:
474:domino effect
470:
464:
456:
454:
452:
448:
444:
436:
430:
427:
426:
421:
417:
414:
413:
409:
405:
401:
398:
397:
396:
394:
387:
382:
378:
374:
371:
368:
365:
362:
357:
354:
350:
346:
342:
338:
335:
331:
327:
323:
322:
318:
316:
312:
310:
306:
300:
299:Short selling
293:Short selling
292:
290:
286:
284:
283:
278:
274:
270:
266:
262:
258:
254:
248:
246:
242:
235:Margin buying
234:
232:
230:
224:
222:
217:
208:
206:
204:
200:
196:
192:
187:
179:
175:
172:
168:
165:
164:
163:
161:
157:
153:
149:
145:
141:
137:
133:
128:
120:
117:
109:
106:February 2021
98:
95:
91:
88:
84:
81:
77:
74:
70:
67: –
66:
62:
61:Find sources:
55:
51:
45:
44:
39:This article
37:
33:
28:
27:
22:
2642:Tender offer
2562:Public float
2532:Market trend
2522:Market depth
2506:
2342:Growth stock
2316:Buy and hold
2225:(Cap-to-GDP)
2065:Floor trader
2055:Market maker
2038:Floor broker
2026:Participants
1969:Golden share
1964:Common stock
1940:Third market
1660:
1646:Forward rate
1557:Total return
1445:Real options
1348:Ratio spread
1328:Naked option
1288:Debit spread
1119:Fixed income
1061:Strike price
940:
934:
928:
916:. Retrieved
890:. Retrieved
879:
798:
795:
787:
777:
776:
765:implicit in
756:
745:
734:
652:
644:
563:
561:
558:
552:
546:
540:
536:
529:
525:
514:
510:
507:
503:
498:
494:
492:
471:
467:
446:
442:
440:
407:
392:
391:
366:
360:
344:
340:
325:
313:
308:
302:
287:
280:
269:margin calls
265:stock market
249:
244:
238:
225:
212:
185:
183:
148:counterparty
135:
129:
127:
112:
103:
93:
86:
79:
72:
60:
48:Please help
43:verification
40:
2693:Credit risk
2647:Uptick rule
2627:Stock split
2607:Squeeze-out
2602:Speculation
2547:Open outcry
2436:Block trade
2368:Pairs trade
1577:Zero Coupon
1507:Correlation
1455:Vanna–Volga
1313:Iron condor
1099:Bond option
947:: 271–281.
918:10 February
892:4 September
759:speculators
463:Margin Call
457:Margin call
160:credit risk
2677:Categories
2652:Volatility
2632:Stock swap
2552:Order book
2303:strategies
2229:Book value
2097:Arbitrager
2092:Speculator
1851:Tax policy
1567:Volatility
1477:Amortising
1318:Jelly roll
1253:Box spread
1248:Backspread
1240:Strategies
1076:Volatility
1071:the Greeks
1036:Expiration
888:. Innowiki
871:References
482:volatility
404:put option
216:collateral
178:derivative
140:collateral
76:newspapers
2268:Fed model
2263:EV/EBITDA
2178:Dark pool
2109:Regulator
1954:Types of
1920:Types of
1542:Inflation
1492:Commodity
1450:Trinomial
1385:Bachelier
1377:Valuation
1258:Butterfly
1192:Commodore
1041:Moneyness
842:MVA, the
713:$
698:−
681:−
666:$
619:−
600:−
428:Example 3
415:Example 2
399:Example 1
180:contract.
2597:Slippage
2557:Position
2542:Momentum
2446:Dividend
2125:Exchange
2082:Investor
1681:Slippage
1611:Contango
1595:Forwards
1562:Variance
1522:Dividend
1517:Currency
1430:Margrabe
1425:Lattices
1404:equation
1390:Binomial
1338:Strangle
1333:Straddle
1230:Swaption
1212:Lookback
1197:Compound
1139:Warrants
1114:European
1094:American
1086:Vanillas
1051:Pin risk
1031:Exercise
807:See also
763:leverage
549:= 20,000
408:at least
221:interest
156:exchange
2486:Haircut
2290:T-model
2102:Scalper
1922:markets
1600:Futures
1220:Rainbow
1187:Cliquet
1182:Chooser
1162:Barrier
1149:Exotics
1011:Options
953:2117982
746:reduced
219:charge
203:futures
199:options
138:is the
132:finance
90:scholar
2507:Margin
2375:(PMPT)
2237:(CAPM)
2087:Hedger
2060:Trader
2033:Broker
1956:stocks
1661:Margin
1527:Equity
1420:Heston
1323:Ladder
1273:Condor
1268:Collar
1225:Spread
1172:Binary
1167:Basket
951:
742:collar
716:26.66.
643:where
566:using
535:(1,000
532:= 0.25
524:(1,000
305:broker
241:broker
154:or an
152:broker
136:margin
92:
85:
78:
71:
63:
2662:Yield
2637:Trade
2572:Rally
2493:(IPO)
2381:(RMH)
2354:(MPT)
2333:(EMH)
2286:(SML)
2275:(NAV)
2249:(DDM)
2243:(CML)
2214:(APT)
2207:Alpha
2174:(STP)
2168:(DMA)
2162:(ECN)
2156:(MTF)
2150:(ATS)
1532:Forex
1487:Basis
1482:Asset
1469:Swaps
1395:Black
1298:Fence
1157:Asian
1019:Terms
949:JSTOR
833:LIBOR
171:short
97:JSTOR
83:books
2497:Long
2301:and
2231:(BV)
2218:Beta
1366:Bull
1362:Bear
1104:Call
920:2009
894:2022
744:has
701:0.25
493:The
441:The
381:NYSE
375:and
339:The
334:long
324:The
201:and
191:SPAN
69:news
1134:Put
684:0.6
545:750
373:SMA
343:or
130:In
52:by
2679::
1364:,
1124:FX
941:84
939:.
902:^
803:.
669:50
517:.
205:.
134:,
1905:e
1898:t
1891:v
1406:)
1402:(
1368:)
1360:(
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955:.
922:.
896:.
710:=
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695:1
692:(
687:)
678:1
675:(
663:=
660:P
647:0
645:P
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616:1
613:(
608:)
597:1
594:(
586:0
582:P
578:=
575:P
564:P
553:P
547:P
541:P
537:P
530:P
526:P
515:P
511:P
465:.
173:,
119:)
113:(
108:)
104:(
94:·
87:·
80:·
73:·
46:.
23:.
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