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Margin Requirements

The amount of cash or marginable securities (for example, blue chip stocks) that an account holder must have in his account to write uncovered (or naked) options.

Related Terms:

Blue-Chip Stocks
Blue-chip stocks refer to companies with a long history of sustained earnings and dividend payments. These ...

Marginable Security
An investment that can be used as collateral in a margin account. ...

Margin Account
An account in which stocks can be purchased for a combination of cash and a loan. ...

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