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What does Margin Balance mean?

Updated: 9/11/2023
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16y ago

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A positive margin balance is the amount owed to you by the brokerage. A negative margin balance is the amount owed to the brokerage by you.

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Q: What does Margin Balance mean?
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What is a margin in commodities trading?

A margin in commodities trading, is the amount of money you have to deposit in your brokerage account before trading a futures contract. The margin amount varies on each commodity and fluctuates with the volatility of the markets. There is an initial margin amount required when entering a contract and "maintenance" margin amount that must be kept in the account at all times during the contract holding period, which is typically lower than the initial margin. The balance of your account will fluctuate with gains and losses on the contract and if the balance falls below the "maintenance margin" amount, you get a "margin call", which means you must deposit enough money to meet the margin or close your contract. If you don't do either of these options, the broker will close the position before the balance falls to zero.


What does buying on margin mean?

Buying on margin is borrowing money from a broker to purchase stock.


What does it mean to have a margin of safety?

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What does normative gross margin mean?

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What does profit margin mean?

Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin


What was one major of buying stock on margin?

If the stock price fell, the buyer still had to pay the balance owed.


What was on major danger of buying stock on margin?

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What was one danger of buying stock on margin?

If the stock price fell, the buyer still had to pay the balance owed.


What was one danger of buying stock margin?

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What douse marge mean in french?

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What was one major danger of buying on stock margin?

If the stock price fell, the buyer still had to pay the balance owed.


What was one major danger of buying stock of margin?

If the stock price fell, the buyer still had to pay the balance owed.