Margin
Financial term in the Investing category
Definition
Borrowed money from a broker to purchase securities. Amplifies both gains and losses. Requires a margin account and maintaining minimum equity levels to avoid margin calls.
Frequently Asked Questions
What is Margin?
Borrowed money from a broker to purchase securities. Amplifies both gains and losses. Requires a margin account and maintaining minimum equity levels to avoid margin calls.
Why is Margin important in personal finance?
Margin is an important investing concept that helps individuals make better financial decisions. Understanding Margin can improve your financial planning and help you achieve your money goals.
How does Margin relate to Margin Call?
Margin and Margin Call are related financial concepts. A broker's demand for additional funds when a margin account falls below the required minimum value. If not met, the broker can sell securities to cover the shortfall.
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