The 40% margin rule requires the buyer/seller of a security to provide at least 60% of the funds necessary to cover the transaction, borrowing 40%.

Name: The 40% margin rule requires the buyer/seller of a security to provide at least 60% of the funds necessary to cover the transaction, borrowing 40%.
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The 40% margin rule actually requires the buyer/seller to provide at least 40% of the funds, allowing them to borrow up to 60% of the transaction amount.

The 40% Margin Rule Requires the Buyer/seller of a Security