Margin trading is the borrowing of money by a trader ― from a broker ― for the purchase or sale of a security. Margin refers to the up-front capital put forth by the trader and acts as a good-faith deposit on the extended credit. Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. A margin account is a brokerage account in which the broker lends the customer cash to purchase assets. When trading on margin, gains and losses are magnified. Definition of margin trading: Practice of buying stock with money borrowed from the broker. In this arrangement, the investor makes a cash down payment... The following article introduces margin trading, initial margin, and maintenance margin. The articles first define them before giving an example and those work on Bybit. Over the years, margin…
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One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit comp... An investor who wants to take a position in a stock but doesn't have enough funds can use borrowed funds to purchase the asset. This is called a leveraged position, and the investor is said to be ... FREE eBook: "How to Day Trade" Download Now: http://webinar.warriortrading.com/signup In this video, presented by Lightspeed Trading I go over the two basi... This video contains: definition of the term "margin", calculation of the margin. There’s no quicker way for a trader to lose their shirt than trading on margin without understanding how it works. Margin trading can help you maximize gains and, conversely, maximize your losses.