five hundred dollar rule


A rule mandated by the Federal Reserve that prevents a firm from having to liquate a client's account to cover a margin call equating to $500 or less. This eliminates the possibility of this major action happening due to small logistical items such as not being able to get prior approval from the client.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
five against note spread (FAN) five percent rule