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Glossary Term: DEBIT BALANCE

Definition(s) for DEBIT BALANCE:


1. ) the amount owed in a brokerage margin account. Debit balance occurs when an investor purchases securities on margin or borrows money from the account by using securities as collateral.

2. ) In a customer's margin account, that portion of the purchase price of stock, bonds or commodities that is covered by credit extended by the broker to the margin customer.



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