Margin account The deposit required to open or maintain a position. Margin can be either "free" or "used".
Margin Account A brokerage account that lets an investor buy securities on credit or borrow against securities held in the account. Interest is charged on such borrowing, but usually at attractive rates compared with other forms of debt.
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Margin accounts allow purchasing more securities than the value deposited into the account, and therefore are a form of leverage.
Definition Margin account A brokerage account that has authorized the use of margin trading. The minimum initial deposit of $2,000 in equity is required to open a margin account, in the form of cash or securities. RELATED TERMS ...
Margin account In a margin account, the cash and securities in your account act as collateral for a line of credit that you take out from the brokerage in order to buy more stock.
Margin Account (Stocks): A leveraged account where the brokerage firm lends the account owner a portion of the purchase price for certain securities.
Margin Account An account that allows leverage buying on credit and borrowing on currencies already in the account. Buying on credit and borrowing are subject to standards established by the firm carrying the account.
Equity in a margin account - represents your ownership in the account. In a long account the equity is the market value of your long positions less the debit balance.
What is a Margin Account? A Margin Account allows you to borrow cash from Firstrade to purchase securities. The loan in the account is collateralized by the securities you purchase.
The balance of a margin account. Related: Buying On margin, Initial margin requirement. Related Links: ...
Margin Account A Margin Trading Account is the riskier of the three types of trading accounts. I'm not saying that a margin account should or should not be used, but you should know the risks involved with trading using margin.
Margin account A brokerage account allowing customers to buy securities with money borrowed from the brokerage. See margin. Back to Top ...
Margin Account A brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities and cash.
Margin Account When an investor borrows from his/her broker to finance the purchase of an asset. The Fed determines what the maximum borrowing rate is. Marginal Tax Rate The tax rate that would be applied to the next dollar of income.
margin account " a line of credit with a bank, broker or trust company where money is borrowed for investing while using investments as collateral ...
MARGIN ACCOUNT (STOCKS) A leverageable account in which stocks can be purchased for a combination of cash and a loan.
Margin Account- This is the account a trader must own in order to qualify for borrowing funds.
Margin Account An account that uses credit from the brokerage firm to buy or sell short securities. The client will be charged interest on the credit. The client will have to deposit a margin amount to get the credit. Market Capitalization ...
Margin account: An account in which a customer may pay only part of the purchase price of securities.
Margin Account A brokerage account whose monies can be borrowed to buy securities. Market Capitalization ...
Margin Account - An account that allows the holder to trade on collateral and borrow from the broker. Margin accounts are required for futures trading. Read more about Margin Accounts.
Margin Account - A specific type of brokerage account in which the customer may borrow money from the broker to buy securities.
Margin Account - An account in which the firm lends the customer money on purchases or securities on short sales.
Margin Account A client account that uses credit from the investment dealer to buy a security. A client needs to deposit a margin amount with the balance advanced by the investment dealer against collateral such as investments.
Margin Account: A margin account is a brokerage firm account that permits an investor to buy securities by borrowing a percentage of the purchase price.
Margin Account An account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by ... Margin Call ...
Margin accounts can be very risky and they are not suitable for everyone. Before opening a margin account, you should fully understand that: ...
Margin Account An account with a brokerage firm that allows its clients to buy securities with money borrowed from the broker. Depending on the security, an investor can sometimes borrow up to 50% or more of the market value.
Margin account This type of brokerage account allows you to borrow funds, using your own marginable securities as collateral. The borrowed funds may be used for any purpose, including the purchase of more securities. For comparison see Cash Account.
Margin Account: a brokerage account with approved credit so you can buy stock on margin. Market Capitalization: latest stock price multiplied by number of shares outstanding (shares issued).
A margin account broker with internet access and a fast connection A computer terminal capable of running several programmes simultaneously Proprietary software to open and manage positions and to display technical analysis tools.
In margin accounts you are able to borrow money in order to invest in equties, you only need to put 50% down to begain with. So if you have a $5,000 account in a margin account your buying power for stock is doubled to $10,000. Search Our Site ...
The margin account provides the capital to finance futures positions. It is a direct measure of the customer's equity so it is important to properly manage margin funds both in terms of monitoring the level of equity in the account and getting the ...
See margin account. Learn more about general account » general account business definition ...
Is a margin account the doesn't meet specified criteria from the firm where the account is held, and is thus called and required to repay money in the account. This is commonly referred to as a margin call. CATEGORIES ...
Your margin account is debited by 1,580 USD ("variation in margin"), taking it down to 2,381.75 USD which is sufficient to support 2,381.75 USD/0.025 = 95,270 USD worth of open positions. Your current exposure, however, is: 100,000 X 1.
The Margin Account
To trade on the margin , a trader must have a margin account. A margin account is a special type of account that traders can have with a brokerage firm or bank.
To open a margin account, your broker is required to obtain your signature. The agreement may be part of your account opening agreement or may be a separate agreement.
Undoubtedly, margin accounts allow an investor to gain control of a large block of stock at a minimal investment.
Related terms: margin account minimum, minimum margin requirement, account margin, investment margin, initial margin, definition margin, initial margin requirements ...
In a customer's margin account, that portion of the purchase price of stock, bonds or commodities that is covered by credit extended by the broker to the margin customer. (see Margin). Debt / Equity Ratio ...
You must have a margin account to be able to short stocks. Your online broker may not have enough shares available for you to short. If the stock pays a dividend while you are short, YOU will be liable. Is Shorting Stocks Ethical?
The size of your margin account has the greatest effect on stop placement.
If you ask for a margin account, there will be a separate section for that as well. Fraudulent Stock Information ...
Equity: In a margin account, this is the difference between the securities owned and the margin loans owed. It is the amount the investor would keep after all positions have been closed and all margin loans paid off.
Margin call: Margin accounts have minimum maintenance requirements.
When you open a new margin account with a forex broker, you must deposit a minimum amount with that broker. This minimum varies from broker to broker and can be as low as $100 to as high as $100,000.
callable loan A loan used by brokerage firms to maintain margin accounts or finance underwriting... callable stock A stock which the issuer may buy back on demand at a specified price. Also...
Rules of the Federal Reserve Board and NASD govern margin accounts. (See Regulation T) markdown and markup ...
Margin Account : An account that allows leverage buying on credit and bor... Margin Call : A demand for additional funds to be deposited in a margin a... Marginal Risk : The risk that a customer goes bankrupt after entering int... Mark Up : Premium.
Margin: A margin account can have more buying power than the cash value of the account alone. A margin account is generally necessary to trade option spreads or naked option positions.
Margin Call A brokerage firm's demand that a customer deposit enough money or securities to bring a margin account back up to the minimum maintenance amount.
Today - many brokers offer special margin accounts to investors which make margin trading as simple than using any other form of credit.
Margrabe (1978) showed several applications for this sort of option (margin account, corporate exchange offer, and standby commitment) and derived a model for pricing this option. Other people discovered numerous additional examples of this option.
Both of those strategies are complex, however, and they require the hedger to tie up funds in margin accounts. To ease this burden, NYMEX in 1994 launched the crack spread contract.
In order to buy stock on margin, you first must set up a margin account with a firm which is different from a cash account. There is a minimum deposit required that depends on the firm but is typically at least $2,000 if not more when margin trading.
Margin-based accounts differ from credit-based accounts in that when trading in a margin account, you must first open an account with your broker, and then fund the account by depositing money into the account.
Funds that a trader must have in a margin account that represent a percentage of the current market value of the securities held by the trader.
Leveraged Stock - Leveraged Stock is stock financed with credit, such as that purchased on a margin account. A certificate obtained on credit, especially on a margin account.
See also: Account, Margin, Market, Trading, Broker
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