house excess

Definition

The amount of cash or securities that is in excess of what a trader needs to have in a margin account for buying securities. These funds may be used to borrow more funds for moving on additional margin transactions. The funds can also be used as a cushion for avoiding margin calls when the value of a trader's account declines.

Use house excess in a sentence

You should try to make sure that you do not end up with a house excess that you don't know what to do with.

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The house excess was substantial so the trader had no concerns about the high volume margin trader he had been dealing with.

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The company had a house excess, much to the accounting teams surprise, and there was some debate as to how to leverage those funds to our best benefit.

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