The margin account is also an overdraft account; Credit account. An account opened by an investor in a securities company. Through this account, investors can use stocks as collateral, borrow funds from securities companies and invest according to a certain proportion of the total market value of the assets in the account.

If the market falls and the market value of the stock fails to meet the minimum standard of mortgage, investors must add margin or sell the stock. Overdraft accounts in the United States are governed by federal regulations; The Federal Reserve has made special provisions on the overdraft ratio.

In stock index futures trading, in order to ensure the performance and safeguard the legitimate rights and interests of both parties, the margin trading system is implemented. Anyone who participates in stock index futures trading, whether the buyer or the seller, must pay the deposit according to the regulations of the exchange where he is located. Margin is the financial guarantee for the trader to perform the contract.

Extended data:

According to Article 20 of the Settlement Rules of China Financial Futures Exchange, the depository bank of futures margin enjoys the following rights:

(1) Opening a special settlement account for the exchange and a member futures margin account;

(two) the deposit of futures trading margin and other related funds.

(three) to understand the credit status of members in the exchange;

(4) Other rights stipulated by laws, administrative regulations, rules and the exchange.

Article 21 A depository bank for futures margin shall perform the following obligations:

(1) Give priority to transfer the funds of clearing members according to the bills or instructions provided by the exchange.

(2) Inform the Exchange of members' bad behaviors and risks in fund settlement in time;

(three) keep the business secrets of the exchange, members and customers;

(4) Assisting the Exchange in resolving major risks when they occur.

(5) Providing funds for the futures margin account of members to the Exchange.

(six) according to the requirements of the exchange, assist the exchange to check the source and destination of member funds;

(seven) according to the requirements of the China Securities Regulatory Commission or the exchange, take necessary supervision measures for the funds in the futures margin account of the members;

(8) Other obligations stipulated by laws, administrative regulations, rules and the Exchange.

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