same-day substitution

Same-Day Substitution

An offsetting change in a margin account, made over the trading day, that results in no overall change in the value of the account. When a same-day substitution is made, a margin call is not generated.

Investopedia Commentary

A same-day substitution happens when a rise in the market value of one margin security is offset by an equal decline in another.

Related Links

Margin Trading Tutorial

See also: Initial Margin, Leverage, Maintenance Margin, Margin, Margin Account, Margin Call, Market Value, Minimum Margin, Offset

Also spelled: Same Day Substitution, Sameday substitution