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Margin is a line of credit issued to an investor typically from a brokerage firm using other investments held in the account as collateral.

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โˆ™ 2008-12-15 06:45:16
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Q: What is margin money?
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Related Questions

What is profit margin used for?

money


What does buying on margin mean?

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


Is a commodity trader liable for losses exceeding his margin money in case his trades are not squared off by the broker within his margin money?

yes


How much money did Margin Call gross worldwide?

Margin Call grossed $17,872,206 worldwide.


How much money did Margin Call gross domestically?

Margin Call grossed $5,353,586 in the domestic market.


What is the term for buying stock with borrowed money?

Margin.


What is Borrowing money to buy stock?

Buying on margin


What is margin money and how it is related to working capital?

Margin money is the promoter's stake and it works as a safety cushion to the bank's or state financial corporations extending working capital assistance


What does stocks on margin mean?

05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.


What is buying on margin?

its borrowing money to invest in the stock market


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.


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 on margin involves what?

traders borrowing money from their brokerstraders borrowing money from their brokers


Buying on margin was a method of buying stocks?

with mostly borrowed money


How do you use the word margin in a sentence?

That is one good margin. The profit margin was so large, he only had to sell two cars a week to earn enough money to pay all those bills of his.


What is the typical profit margin for commercial tenant fit out construction?

In todays economy, figure on zero profit margin, and your competition planning on negative margin. Basically paying money to keep the doors open


What happens when Currency traders buy on margin?

When currency traders buy on margin they borrow money from their broker. They do this in order to make a larger currency purchase.


What is the definition of the buying power of money?

"The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "excess equity." For example, if you have $1,000 cash in a margin account and the maximum margin rate is 50%, then your total buying power is $2,000. For a non-margin account, the buying power is equal to the amount of cash in the account." From Investopedia.com


What is a margin?

A margin is the edge or border of something, or the amount by which something wins or falls short. It can also be a verb meaning to provide with an edge or border, or to deposit an amount of money with a broker as security.


Stock on margin?

It's to borrow money from the bank and pay back later.


Is it legal to write a message on the white margin that goes around money?

Yes!


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 is borrowing money to invest in the stock market is called?

It is called using margin or leverage.


Why did banks lose money in the stock market in the 1920's?

because they lent people money to buy stocks on margin.


What was buying on margin in 1920's?

"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest.