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What explains how buying on margin increase the leverage of currency traders?

borrowing money allows traders to make large purchases without a large amount of money up front.


How currency traders can buy large amounts of currency with little money?

Its called using leverage or buying on margin, but putting it simply they take out a loan.


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.


Contribution margin ratio always increases when?

The contribution margin ratio increases when?


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 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.


Why does margin of error increases while level of confidence increases?

The margin of error increases as the level of confidence increases because the larger the expected proportion of intervals that will contain the parameter, the larger the margin of error.