The amount of cash or securities that is in excess of what a trader needs to have in a margin account for buying securities. These funds may be used to borrow more funds for moving on additional margin transactions. The funds can also be used as a cushion for avoiding margin calls when the value of a trader's account declines.
Related information about house excess:
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Definition of house excess: The amount of cash or securities that is in excess of what a trader needs to have in a margin account for buying securities.
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