Tuesday, May 31, 2016

Margin Trading

Define Buying On Margin

Define Buying On Margin


Investing on margin isn 't necessarily. Margin is a high-risk strategy that can yield a huge profit if executed correctly. If you don 't understand what stocks are, you certainly don 't want to be buying them on margin!.Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you 'd be able to normally. To trade on margin, you need a margin account..



In finance, margin is collateral that the holder of a financial instrument has to deposit with a In extreme cases, certain securities may cease to qualify for margin trading; in such a case, th .Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky..The Basics Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you .Trading on margin allows you to leverage securities you already own to purchase additional securities, sell securities short, protect your account from overdraft, .


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