Related Words

Original Margin: The margin needed to cover a specific new position. Related: Margin, security deposit (initial).

Margin Call: To protect the margin loans they make, brokers issue a margin call if your equity in your margin account falls below the required maintenance level of at least 25%. If you get a margin call, . . . View Full Definition

Maintenance Margin Requirement: A sum, usually smaller than but part of the original margin, that must be maintained on deposit at all times. If a customer's equity in any futures position drops to or below, the maintenanc . . . View Full Definition

Note (Original Note): A document signed by the borrower of a loan and stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay. The note serves as evidence of the d . . . View Full Definition

Operating Profit Margin: The ratio of operating profit to net sales.

Original Basis: The sum of the purchase price of a property plus buying expenses on acquisition.

Option Margin: The margin requirement for options described in Regulation T and in brokers' individual policies.

Net Profit Margin: Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.

Net Operating Margin: The ratio of net operating income to net sales.

Marginal Tax Rate: Because the US income tax system is progressive, your tax rate rises as your taxable income rises through two or more tax brackets. Your marginal tax rate is the rate you pay on the taxable . . . View Full Definition