# Regulation T

*Regulation & Compliance — Finicade finance glossary*

Regulation T sets the Federal Reserve initial margin requirement for US retail securities purchases at 50% — investors may borrow at most half.

Regulation T sets the Federal Reserve's initial margin requirement for US retail securities purchases at 50%, so investors can borrow at most half a position's value. Brokers may impose stricter house requirements and routinely do on volatile names. Separate FINRA maintenance rules govern when a margin call is triggered, which is the part that actually forces liquidations.

**Also known as:** Reg T, margin requirement rules, initial margin retail

**Related terms:** [Margin](https://finicade.com/glossary/margin), [Margin Call](https://finicade.com/glossary/margin-call), [Leverage](https://finicade.com/glossary/leverage), [Day Trading](https://finicade.com/glossary/day-trading), [Brokerage Account](https://finicade.com/glossary/brokerage-account)

Source: https://finicade.com/glossary/regulation-t