Marginal Loan Availability

Marginal Loan availability is the amount of loan or the amount of currency say dollar that is right now available in the margin account of an individual to buy securities with this amount. For an old account margin loan availability is defined as the portion of loan that was acquired by the customer from the broker in order to purchase securities and some of the amount of this loan is used by the customer to purchase loan where as some of the loan is still available in the margin account that is termed as available loan. For the new account the marginal loan availability can be defined as percentage amount of the acquired loan available in the account that is available for the future marginal purchases of the securities. In other words marginal loan availability can be defined as the dollar amount that is available in the margin account for the future purchases and is available for the withdrawal from the marginal account where the existing marginable positions or purchases are being used as collateral. The value of the marginal loan availability changes on the daily basis as the value of the marginal debt changes on the daily basis depending upon the trends of the market. The marginal debt also includes the value of the purchases securities. The margin availability loan do not define or represent pending trades that are between the trade date and settlement date and not settled yet.

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