A margin loan or a margin account is a loan made by a brokerage house to a client that allows the customer to buy stocks on credit.
Margin Loan - A lending facility secured by a charge over an investor's stock. This allows the trader to purchase more stock and thereby gain the benefits of gearing.
Margin loan: a line of credit established for the purpose of investing in shares or unit trusts, often to make use of negative gearing.
call money rate The interest rate that banks charge brokers to finance margin loans to investors.... call option A Call is an option contract that gives the holder the right (but not the obligation)...
Call money rateAlso 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.
Were you to need emergency funds, it's possible to temporarily borrow against your securities to create a margin loan, withdrawing the cash. This is not without risk! ...
Increasing returns (and risk) with margin loans.
The most common way to seek extraordinary returns by increasing risk is to buy stock on margin. You can buy 2 shares for every 1 share you could have bought without using margin.
Unlike other loans, like for a car or a home, that allow you to pay back a fixed amount every month, when you buy stocks on margin you can be faced with paying back the entire margin loan all at once if the price of the stock drops suddenly and ...
Brokers make a good part of their money by collecting interest on margin loans. And since margin gives investors more (borrowed) money with which to buy stocks, it generates greater commission fees for those same brokers.
A comprehensive brokerage account that includes checking, a credit or debit card, margin loans, and the automatic sweep of cash balances into a money market fund.
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.
Equity option ...
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Liability - Liability is the amount of money that a portfolio account owes. For example, if one buys stocks on margin, the margin loan amount would represent the account's liability.
Definition
Debit balance
The outstanding amount owed to a broker by a customer for a margin loan.
RELATED TERMS ...
In securities, refers to the commitment of securities to serve as collateral for margin loans at the broker-dealer firm.
Stock Market Glossary : Includes all the terms and definitions from the stocks glossary on Woopidoo.com. All words and terms relating to stock markets, investing in company shares, margin loans, and much more.
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Gearing (1) A measure of the debt ratio, which is the amount of borrowing compared with the equity in an asset, (2) Borrowing to invest, such as when purchasing a house using a mortgage or purchasing a share portfolio using a margin loan.
on the books of the lender and appears on your account statement as a liability. For example, if you have a margin account and borrow money to buy stock, your monthly brokerage statement will show a debit balance for the amount of the margin loan.
Indebtedness includes money owed to the firm, margin loans, and commitments to purchase securities. Liquid assets include cash, and assets that are easily converted to cash. net tangible assets ...
 See also: Margin, Broker, Interest, Investment, Stock
  
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