0
Investing always involves risks, including the risk of loss. Anyone who lends someone else money runs the risk of that person not paying the money back. Margin lending also includes other types of risks. These risks include, but are not limited to, owing more than the original principal if a particular investment drops in value.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What risks are associated with granting credit?
The risk of lending on character is called "moral risk," the risk of lending on capacity is called "business risk," and the risk of lending on capital is called "property risk." An ideal borrower will combine a minimum of each of these three risks
What is margin money on letter of credit?
Margin money on a letter of credit is the part of the interest rate that is over the adjustment-index rate. It is the part that is retained as profit by the one doing the lending.
Are there any cost with trading with cfd?
"Yes, there is a cost for using the leverage that CFDs enjoy. You will be charged interest daily for the margin, which is effectively the broker lending you money. This applies if you go long, that is you expect the financial instrument to increase in value."
How do you define buying on margin?
Buying on Margin is a technique using borrowed money to make purchases and using those purchases as collateral.
Buying stocks on the chance of a quick profit without considering risks is known as?
buying on margin.
operating margin?
operating margin shows the operating income earned by a company. higher margin implies higher revenue earned. operating margin is calculated using the following formula:operating margin = (Operating income / Revenue) x 100
What is a sentence using the word margin?
The margin on the paper was very thick.
When is margin of error used?
Margin of error is used in statistics to express the uncertainty associated with survey results. It indicates the range within which the true population value is likely to fall. Margin of error helps to measure the reliability and accuracy of the survey findings.
What are the risks of using oil as fuel?
Acid rain and global warming are the man two risks using oil as fuel.
are there any risks when using a latex mattress?
No, there are no risks when using a latex mattress. Using a latex mattress is just as safe as using any other normal spring mattress.
How do you calculate break even points using contribution margin?
Break even point = Fixed Cost / Contribution margin
What are the risks of using weed?
none
