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DebitRecorded as negative (-) in the balance of payments, any transaction that gives rise to a payment out of the country, such as an import, the purchase of an asset (including official reserves), or lending to foreigners. Opposite of credit.DebitAn expense, or money paid out from an account. A debit transaction is one which the net cost is greater than the net sale proceeds. See also Credit.DebitAn outflow of funds from an account with a bank or financial institution. For example: When a person writes a cheque, his/her account will subsequently be debited with the amount.Similar MatchesDebit spreadDebit spreadA spread strategy that decreases the account's cash balance when it is established. A bull spread with calls and a bear spread with puts are examples of debit spreads. Debit cardDebit cardA plastic payment card, issued by a bank or other financial institution, which enables the holder to obtain goods and services without the requirement to pay cash. The debiting procedure commences directly after the transaction which results in the holder's account being debited within a few days. In addition to obtaining goods, the card can be used to obtain cash which results in the holder's account being debited immediately. See also 'charge card' and 'credit card'. Adjusted debit balance (ADB)Adjusted debit balance (ADB)The account balance for a margin account that is calculated by combining the balance owed to a broker with any outstanding balance in the special miscellaneous account, and any paper profits on short accounts. Debit balanceDebit balanceThe amount that is owed to a broker by a margin customer for loans the customer uses to buy securities. Debit noteDebit noteA note, issued to a person or company indicating an amount owed. Further Suggestionsdirect debitDirect debits Customers net debit balance Debit spread |
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