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