Leverage Customer Funds Law and Legal Definition
According to 17 CFR 1.3 (Title 17 - Commodity And Securities Exchanges; Chapter I - Commodity Futures Trading Commission; Part 1- General Regulations Under The Commodity Exchange Act; Definitions), the term leverage customer funds means “all money, securities and property received, directly or indirectly by a leverage transaction merchant from, for, or on behalf of leverage customers to margin, guarantee or secure leverage contracts and all money, securities and property accruing to such customers as the result of such contracts, or the customers' leverage equity. In the case of a long leverage transaction, profit or loss accruing to a leverage customer is the difference between the leverage transaction merchant's current bid price for the leverage contract and the ask price of the leverage contract when entered into. In the case of a short leverage transaction, profit or loss accruing to a leverage customer is the difference between the bid price of the leverage contract when entered into and the leverage transaction merchant's current ask price for the leverage contract."
Legal Definition list
Related Legal Terms
- Additional Funds Needed [AFN]
- Administrative Subdivision of Funds
- Administrative Takedown Funds [Transportation]
- American Customer Satisfaction Index
- Ask Price of a Leverage Contract
- Average Agricultural Loan Customer
- Bid Price of a Leverage Contract
- Bid-Ask Spread of a Leverage Contract
- Border Activity Funds [Transportation]
- Breakpoint [Mutual Funds]
