Monthly Archives: March 2024

Initial Margin Overview, Regulation T, and Example

For example, if you purchase $10,000 worth of stock on margin, at least $5,000 must come from your account balance. The brokerage can loan you the other $5,000, which creates the leveraged position. Understanding the nuances of initial margin and maintenance margin is imperative for any trader engaged in margin trading. Borrowing money can sometimes […]