Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a ...
Sometimes investors will borrow money from their broker to buy stocks or other securities through what’s known as a margin account. It’s a riskier practice than traditional investing, so strict rules ...
Initial margin is the amount required to open a position, while maintenance margin is the minimum amount needed to keep the position open. Imagine if there was no such thing as a mortgage loan.
Margin trading can be a potent ally. It’s an easy way to enhance a portfolio’s earning power. But first, it’s important to know about margin account requirements. Before getting started margin trading ...
With a margin account, an investor can increase their purchasing power (and amplify their gains and losses) using extra money borrowed from their brokerage. A margin account is a special type of ...
Volatility is back, and market swings can sometimes bring an uncomfortable surprise to investors: a margin call. When you buy stock on margin, your brokerage firm lends you cash, using assets in your ...
Trading in the financial markets requires a profound understanding of key concepts such as leverage, margin requirements, and various tools like the lot size calculator. These components play a ...
Margin trading rules are in place to protect both the investor and your brokerage. However, many investors aren’t familiar with trading on a margin. Is this a popular strategy? And what rules or ...
Sometimes, investors may find that there are more investment opportunities out there than they have funds available for. In other cases, investors may have unusually high confidence that they’ve found ...