What's the word for this?

Discussion in 'Trading' started by elitetradesman, Nov 3, 2013.

  1. In a cash account, when you place an order to buy a security, the money required to fill the order is "locked".

    Suppose you have $10,000 in your account. If you place a buy order of 100 shares of a stock at $20,
    you still have $10,000, but $2,000 is locked and only $8,000 is available.

    What's the $2,000 called in this context? Deposits?

    Thanks.
     
  2. tiddlywinks

    tiddlywinks

    Encumbered. Encumbered funds specifically.
     
  3. Thanks! When you cancel an entry order, can we say that the money is unencumbered?