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  • Buying on margin, taking a "margin" loan from the broker to help buy part of a stock purchase
  • Margin call, this happens when the broker demands full payment of your "margin" loan
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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 does stock 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 the difference between buying a call option and selling a put option?

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.


What was one major danger of buying stock on the margin?

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.


What are the differences between buying a call and selling a call option?

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.

Related Questions

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.


Why was buying on a margine risky?

If the stock has not gone up when the margin call is due, you lose money.


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 does stock 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 the difference between buying a call option and selling a put option?

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.


When was Margin Call released?

Margin Call was released on 10/21/2011.


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.


Can you sue a broker for buying stocks on margin when not authorized to do so?

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.


What happens when you Short a call option?

"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.


What is difference between call by value and call by refrence?

What_are_the_differences_between_call_by_value_and_call_by_reference


What is the different between BPOTC and call center?

What is the difference between call centre and bpotc?