Buying on margin

Buying on Margin
the purchase of securities where an investor borrows a fraction of the securities from the broker and uses the security as collateral.

Buying on Margin
When buying on margin you can lose big, but when done correctly and carefully you have pull in big earnings.

Buying on margin
Buying securities by paying only a percentage (a margin) of the purchase price and borrowing the remainder. The loan is usually arranged by the investor's broker. (See also Margin requirement.)
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buying on margin
Buying on margin can help a stock trader make money in the markets. It is a loan you can take to buy a stock.
margin calls
Margin calls can be devestating. Their are a few steps you can take to prevent them.

Buying On Margin
If you buy stocks or mutual fund shares from a broker, you can leverage your purchases. That is, you can borrow money from your broker and buy more shares using your cash and the cash you have borrowed.

Buying on Margin: A risky short-term strategy where a buyer borrows money from a broker to make an investment. The buyer believes the stock price will rise and is trying to maximize profits by investing more money in the stock.

Buying on margin: Purchasing a security partly with borrowed money.
Canada Savings Bond: A bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value.

Buying on margin involves taking out a partial loan from one's broker in order to cover a larger investment than one's capital could directly cover.

The common use of buying on margin (using borrowed funds) amplifies gains and losses, such that substantial losses or gains can occur in a very short period of time. In addition, brokers usually allow bigger margins for day traders.

marginable stock A stock approved for buying on margin. marginal Having a very small quantity. marginal analysis A technique, in microeconomics, where minimal changes in certain variables are...

Buying on margin Call optionAlso called a call, an option that grants the buyer the right to purchase the underlying from the writer.

Additionally, you can adjust each "Trek" to allow for buying on margin/short-selling capabilities.

This is where the big risks of buying on margin arrive in the form of a margin call.

Buying on margin is a double-edged sword. Every time the stock drops by a dollar, you lose $2 because you now have twice as many shares.

Referred to as "buying on margin." TeenAnalyst Advice: Most margin accounts give an investor a 50% margin. What that means is that they can buy $20,000 worth of stock for only $10,000 of their own money. They're charged an interest on ...

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1. Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin".
2. The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.

The balance of a margin account. Related: Buying On margin, Initial margin requirement.

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Investor's equity
The balance of a margin account. Related: buying on margin, initial margin requirement.
Investors service bureau
NYSE service which deals with all general inquiries concerning securities investments.

Interest Deduction (finance term)
Undermargined Account (finance term)
Buying on Margin (business term)
Margin Agreement (finance term) ...

Margin: A margin is the amount of collateral above 100% that a buyer deposits with a broker when borrowing money to buy securities (referred to as "buying on margin").

Related terms: calculating margin, margin account, margin interest, margin requirements, buying on margin, definition of margin, what is profit margin, margin call ...

Brokers, who have a vested interest in enticing customers to use margin, like to say that such accounts increase your "buying power." But in reality, buying on margin only enhances your "borrowing power.

margin: The amount paid by the customer when using a broker's credit to buy or sell a security. See buying on margin in the Stocks/Bond section for more detail.

For investors, leverage means buying on margin or using derivatives such as options, to enhance return on value without increasing investment.

Your rate of return is 1,480/3,963 = 37.35%, on an exchange rate movement of less than 1%. This illustrates the positive effect of buying on margin.

Do you know that margin accounts involve a great deal more risk than cash accounts where you fully pay for the securities you purchase? Are you aware you may lose more than the amount of money you initially invested when buying on margin?

Also called the broker loan rate, the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge. Buying on margin.
Call option ...

(Settlement is officially five business days after the transaction date.) The cash account is the most popular type of brokerage account even though it does not permit investor borrowing (that is, buying on margin). Also called special cash account.

new issues of corporate and municipal securities; to help finance a firm's own investments; and to help finance the purchase of securities for customers who prefer to use the broker's credit when they buy securities, also known as "buying on Margin".

See also: Margin, Investment, Broker, Stock, Market