Skip to main content
Currency

Initial margin requirement

Investors, when purchasing a new security, are required to pay a minimum portion in cash. This amount is known as the initial margin or down payment. It is a percentage of the total investment and is intended to protect the lender in case of default. This concept is crucial in the world of finance and can greatly impact an investor's returns. So, always make sure to have enough cash on hand to cover the initial margin.

Related terms

Tool

Understand the meaning and definition of Tool in the context of stock market, trading, and investments.

MORE
Quote’s feed

Understand the meaning and definition of Quote’s feed in the context of stock market, trading, and investments.

MORE
X

Understand the meaning and definition of X in the context of stock market, trading, and investments.

MORE
Market-maker

Understand the meaning and definition of Market-maker in the context of stock market, trading, and investments.

MORE
Rate

Understand the meaning and definition of Rate in the context of stock market, trading, and investments.

MORE
Fill price

Understand the meaning and definition of Fill price in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91