Deposit
1. A transaction involving a transfer of funds to another party for safekeeping.
2. A portion of funds that is used as security or collateral for the delivery of a good. Investopedia Says:
1. This type of deposit is identical to the money an investor transfers into a bank's savings or checking accounts.
2. Some contracts require a percentage of funds to be transferred before delivery as an act of good faith. An example is the initial margin deposit required for entering into a new futures contract. Related Terms:
3-6-3 Rule
Down Payment
Forward Contract
Futures Contract
Maintenance Margin
Margin
Savings Account |