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What Buying on margin involves what?

traders borrowing money from their brokers


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.


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.


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