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traders borrowing money from their brokers
traders borrowing money from their brokers
Wiki User
∙ 8y ago
Henchiii 1ft
Buying on margin involves using borrowed funds from a broker to purchase an asset, such as a stock or bond. The borrowed funds constitute the margin and the investor must repay the debt with interest. The investor must also maintain a minimum account balance to cover the debt, typically referred to as the margin maintenance requirement. Trading on margin can increase an investor’s potential return on investment, but also carries additional risks.
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traders borrowing money from their brokers
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What Buying on margin involves what?
traders borrowing money from their brokers
How is buying on margin similar to buying on an install.?
Margin is only offer on purchase of securities.
What does buying on margin mean?
Buying on margin is borrowing money from a broker to purchase stock.
What is buying on margin, and why is it a problem sometimes?
What is buying on margin, and why is it a problem sometimes? The biggest risk from buying on margin is that you can lose much more money than you initially invested.
What is the difference between buying on margin and margin call?
Buying on margin, taking a "margin" loan from the broker to help buy part of a stock purchaseMargin call, this happens when the broker demands full payment of your "margin" loan
How is buying on margin similar to buying on an installment plans?
Margin is only offer on purchase of securities.
How is buying on margin similar to buying an installment plan?
Margin is only offer on purchase of securities.
How is buying on margin similar to buying on an installment plan?
Margin is only offer on purchase of securities.
1920 buying on credit was called buying on?
Buying on Margin
Explain why buying on margin can be a devastating thing?
Buying on margin can deplete a person's portfolio and can be a devastating thing.
What is another name for buying on credit?
buying on margin
What is buying stock on credit called?
Buying on margin.
