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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

good faith deposit  

Definition 1.

A deposit paid by a buyer to a seller to demonstrate intention to complete the purchase. also called earnest money.
 

Definition 2.

Used in the context of commodities. Refers to the initial margin account deposit needed when buying or selling a futures contract; approximately 2%-10% of the contract value.Used in the context of securities to describe the deposit required by securities firms engaged in transactions on behalf of a new client.Also used to refer to the deposit with a municipal bond issuer by firms competing for the underwriting business.
 
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