Equity

pooja923
Good Student
Posts: 25
Joined: Fri Mar 11, 2016 11:38 am

Equity

Postby pooja923 » Sat Apr 30, 2016 9:31 am

In case of short sale what should be the initial margin to be deposited with the broker?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Equity

Postby edupristine » Mon May 02, 2016 7:46 am

Hi Pooja
The amount of money in the account that needs to be held, at the time of trade is known as initial margin requirement.
under regulation T, the Federal Reserve Board requires all short sale accounts to have 150% of the value of the short sale at the time the sale is initiated. 150% consists of the full value of the short sale proceeds (100%), plus an additional margin requirement of 50% of the value of the short sale.


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