Good faith deposit
Definition: [crh] Used in the context of commodities. Refers to the initial margin account deposit needed when buying oDefinition: r selling a futures contract; approximately 2%-10% of the contract value.
Used in the context of securities to Definition: describe the deposit required by securities firms engaged in transactions on behalf of a new client.
Also uDefinition: sed to refer to the deposit with a municipal bond issuer by firms competing for the unDefinition: derwriting business.
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