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traders borrowing money from their brokers
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What is the difference between buying on margin and a margin call?
Buying on margin involves borrowing funds from a broker to purchase more securities than one can afford with their own capital, amplifying potential gains and losses. A margin call occurs when the value of the securities held in a margin account falls below a certain threshold, requiring the investor to deposit more money or sell assets to cover the deficit. Essentially, buying on margin is the act of leveraging investments, while a margin call is a broker's demand for additional funds to maintain that leverage.
What is a creative margin?
A margin that is creative.
What is the difference between Contribution Margin per unit and contribution margin ratio?
Contribution margin ratio is overall total contribution margin while contribution margin ration per unit is the allocation of total production contribution margin to per unit basis.
What does the term on margin mean?
The term "on margin" refers to the practice of borrowing money from a broker to purchase securities, allowing investors to buy more stock than they could with just their own funds. This involves a margin account, where the investor deposits a portion of the total investment as collateral, while the broker lends the rest. While trading on margin can amplify potential returns, it also increases risk, as losses can exceed the initial investment. If the value of the securities falls significantly, the broker may issue a margin call, requiring the investor to deposit more funds or sell assets to cover the loan.
How do you calculate the average contribution margin?
Formula for calculating average Contribution margin Average contribution margin = total contribution margin / total number of units
What does buying on margin mean?
Buying on margin is borrowing money from a broker to purchase stock.
How is buying on margin similar to buying on an install.?
Margin is only offer on purchase of securities.
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 plan?
Margin is only offer on purchase of securities.
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.
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.
Buying on credit?
Buying on credit is also called Buying on Margin
