excess margin

excess margin definition - finance
The amount of money in a customerÂ’s brokerage account that is above the minimum required amount. If a customerÂ’s holdings decline in value, the excess margin helps prevent the customer from receiving a margin call, which directs him or her to deposit more money into the account. If an account is required to have a margin of $20,000 and actually has $30,000, then the excess margin is $10,000.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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