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Retirekit Glossary M


The Moving Average Convergence/Divergence (MACD) indicator shows the relationship between 2 moving averages of prices. MACD is derived by dividing one moving average by another. It is based on the point spread difference between 2 exponential moving averages of the closing price.

The basic MACD trading rule is to sell when the MACD falls below its signal line and to buy when the MACD rises above its signal line.
The MACD is most effective in wide-swinging trading markets. When the MACD rises dramatically, it is likely that the security’s price is overextending and will soon return to more realistic levels.
A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. These divergences are most significant when they occur at relatively overbought/oversold levels.
The MACD indicator in BigCharts references the following default parameters:

  • First Moving Average: 12 Bars

  • Second Moving Average: 26 Bars

  • Signal Line: 9 Bars

MA Envelopes
A Moving Average (MA) shows the average value of a security’s price over a period of time. The value is calculated by totaling all the previous closing prices over a time period and dividing them by the number of bars in that time period.

Depending upon the number of bars you use to calculate this figure, these lines may be very sharp (7- or 12-day moving average), or very smooth (40-day moving average).
The Moving Average Envelopes indicator from BigCharts references the following fixed parameters:

  • SMA: 9 Bars

  • Deviance: 2%

Mailing Address
This refers to the address where you want communications from Fidelity to be sent (e.g., statements, trade confirmations). You should also have a legal address on file with Fidelity.

While you may change a mailing address from time to time (e.g., as a result of a seasonal move to a winter or summer residence), a legal address is the address you use for official purposes such as tax reporting.
If you request an IRA distribution and do not have a legal address on file with Fidelity, your mailing address is used to determine your state of legal residence and the state tax laws that determine if Fidelity must withhold state tax from your distribution and, if so, how much.

Make whole call
A corporate issue with an implicit call at an increasing premium as interest rates decline. Issuers may call these bonds at par plus a premium. This premium is derived from the yield of a comparable Treasury security plus additional basis points. The “street” treats these issues as non-call bonds due to the fact that it would be prohibitively expensive for a company to exercise this call option.

Management Fee
Money paid by a mutual fund to its investment manager or advisor for overseeing the portfolio. A management fee is usually between one-half and one percent of the fund’s net asset value.

Ability to borrow against securities you own to purchase other securities, cover checks written against the account, etc., up to a specified limit.

Marginable Security
A security that can be bought by borrowing on margin.

The Federal Reserve determines which securities are marginable. Marginable securities you hold in your account are held in margin which increases your margin buying power.
On the fixed-income security (e.g., bond) details screen, Yes displays if the security is marginable. No displays if it is not.

Margin Agreement
An Agreement between you and Fidelity that specifies the rules and limits for borrowing on margin against your brokerage account.

Note:The margin trading account feature is not available for retirement and Fidelity NetBenefits® accounts.

Margin Buying Power
The maximum dollar amount available, including both cash and margin, to purchase marginable securities without adding money to your account. The balance includes open order commitments, intraday trade executions, and money movement into and out of the account.

  • For Margin Trades
    The dollar amount available to purchase marginable securities without generating a margin call. The balance does not include cash held in the Core but does include intraday trade executions and money movement into and out of the account.

  • For Cash Trades
    The amount available to purchase securities in a Cash account without adding money to the account. Executed Buy orders will reduce this value, and executed Sell orders will increase this value at the time the order executes.

  • Intraday Buying Power
    This balance field only applies to Pattern Day Trade accounts. Unlike Day Trade Buying Power, this value does update intraday to reflect trade executions, money movement in and out of the account, core cash and buying power allocated to open orders.

  • For Non-Margin Securities. Margin buying power available to purchase securities that are not marginable (have a 100% margin requirement).

  • For Corporate Bonds. Margin buying power available to purchase Corporate Bonds. Most Corporate Bonds are marginable, however, margin requirements may vary based on the type of bond.

  • For Municipal Bonds.  Margin buying power available to purchase Municipal Bonds.

  • For Government Bonds
    Margin buying power available to purchase Government Bonds.

Margin Call
Margin calls occur whenever margin equity in the account falls below various requirements or minimums. There are three types of requirements, each with its corresponding calls; Federal, Exchange and House. A Federal Call occurs when there is insufficient equity to satisfy the 50% initial requirement on an opening transaction. An Exchange (or NYSE) Call occurs when the account margin equity falls NYSE’s requirement which is generally 25%. A House Call occurs in a Fidelity account when margin equity falls below Fidelity’s house requirement which is generally set at 35% but can be higher for certain securities.

Margin Calls Due Today
This is the total amount you owe for margin calls that must be settled before the end of the current day and any prior calls that may be past due. This amount does not include any day trade call amounts that may also be due.

Margin Calls Issued
This is the total dollar amount for all margin calls that have been officially issued against your account by the Federal Reserve Board, Exchange, or house (Fidelity).Fidelity reserves the right to meet margin calls at any time prior to the stated due date.

You generally have five business days from the date a house or Federal call is issued to deposit additional cash or securities to meet the call amount. You generally have 48 hours to do so for an exchange call. However, calls can be called at any time depending on market activity.

Margin Credit
The amount due to you based on margin trade executions. This amount will be credited to your Core Money Market on the settlement date. If you owe Fidelity money rather than having money due to you, the amount is instead reflected as a margin debit.

Margin Debit
The amount you must pay Fidelity for margin trade executions. This amount will be debited from your Core Money Market on the settlement date (if, at that time, there is not enough cash in the Core Money Market, interest will start to accrue on the amount owed). If rather than owing Fidelity money, there is money due to you, the amount is instead reflected as a margin credit.

Tel: 800-900-5867 Fax: 800-900-0750 Email:info@theretirementgroup.com

Registered Representative of and securities offered through FSC Securities Corporation, Member FINRA / SIPC. Investment Advisor Representative of and Advisory Services Offered Through The Retirement Group, LLC or FSC advisory. The Retirement Group, LLC and FSC Financial are not affiliated companies


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