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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 balanceDebit balanceThe amount that is owed to a broker by a margin customer for loans the customer uses to buy securities. Debit spreadDebit spreadApplies to derivative products. Difference in the value of two options, when the value of the option bought exceeds the value of the one sold. One buys a "debit spread." Antithesis of a credit spread. Customers net debit balanceCustomers net debit balanceThe total amount of credit given by NYSE member firms to finance customers purchasing securities. 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 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. Further Suggestionsdebit carddebit note Direct debits direct debit |
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