The margin requirement sets the maximum cash investment the individual investor must make.

Name: The margin requirement sets the maximum cash investment the individual investor must make.
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The margin requirement is a percentage of the total value of the investment position that is required to be deposited in cash or equity by the investor. It is not the maximum cash investment the individual investor must make, but rather the minimum amount required to hold a particular investment position.

The Margin Requirement Sets the Maximum Cash Investment the Individual