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.
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.
Buying a call option gives you the right to buy a stock at a certain price, while selling a put option obligates you to buy a stock at a certain price.
One major danger of buying stock on margin is the potential for significant financial loss. If the value of the purchased stock declines, investors are still responsible for repaying the borrowed funds, which can lead to substantial debt. Additionally, a margin call can occur, requiring investors to deposit more money or sell assets at a loss to cover the loan, amplifying the risk involved in margin trading. This leverage can result in both higher profits and devastating losses, making it a risky investment strategy.
Buying a call option gives you the right to buy a stock at a specific price, while selling a call option obligates you to sell a stock at a specific price.
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.
If the stock has not gone up when the margin call is due, you lose money.
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.
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.
Buying a call option gives you the right to buy a stock at a certain price, while selling a put option obligates you to buy a stock at a certain price.
Margin Call was released on 10/21/2011.
Margin Call grossed $17,872,206 worldwide.
The excess margin ratio is a financial metric that measures the amount of capital a company has beyond its minimum required margin levels, often used in the context of margin trading and risk management. It is calculated by taking the difference between total equity and the required margin, divided by total equity. This ratio helps investors assess the safety and risk associated with their investments, indicating how much cushion exists before reaching a margin call. A higher excess margin ratio suggests a stronger financial position and lower risk.
Margin Call grossed $5,353,586 in the domestic market.
when you opened the account you probably opened with margin. If you bought more stock than you had cash for and were leveraged against your will and had to sell out or got a margin call you can go to arbitration. You waived your right to sue wen you opened the account, you have to go arbitration which can work out better for you.
"Shorting a call" is better known as writing a naked call. Basically, a naked call is a call on a position you don't hold, and it has unlimited risk--if you get exercised and the strike price plus the premium is lower than the stock price, you must make up the difference out of your margin account--or you'll receive a margin call from your brokerage. Many brokerages won't allow you to write a naked call, and the ones that will demand a very large margin account and a lot of experience in trading options.
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