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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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17y ago

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What does normative gross margin mean?

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Is the VAT tax on the profit margin?

VAT should not be shown in any part if the profit and loss statement, it will only appear on the balance sheet. So unless the company is not VAT registered then VAT will nit be in the margin.


What is a margin check?

A margin check is a process used by brokerage firms to ensure that a trader's account maintains sufficient equity to cover the required margin for their open positions. It involves reviewing the account's balance against the margin requirements set for each trade. If the account falls below the required margin level, the broker may issue a margin call, requiring the trader to deposit additional funds or liquidate positions to meet the necessary equity. This is crucial for managing risk in leveraged trading.


What does an investor do when they receive a margin call?

When an investor receives a margin call, it means that their brokerage requires additional funds or collateral to maintain their margin account due to a decline in the value of their securities. The investor typically has a few options: they can deposit more cash or securities to meet the margin requirement, sell some of their existing holdings to reduce their margin balance, or allow the brokerage to liquidate assets to cover the shortfall. Failing to address the margin call can lead to forced liquidation of positions by the brokerage.


What is the margin check?

A margin check is a process used in finance and trading to ensure that an investor's account maintains sufficient equity to cover potential losses on their open positions. It involves comparing the account's current margin balance against required margins set by brokers or exchanges. If the margin falls below the required level, the broker may issue a margin call, requiring the investor to deposit additional funds or liquidate positions to meet the necessary margin requirements. This helps manage risk and maintain the integrity of the trading system.

Related Questions

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?

Time and Space


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 douse marge mean in french?

Soft Margin!


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?

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


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?

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


Is the VAT tax on the profit margin?

VAT should not be shown in any part if the profit and loss statement, it will only appear on the balance sheet. So unless the company is not VAT registered then VAT will nit be in the margin.


What was one major danger of buying on stock margin?

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