What is a margin in finance?

Asked 4 years ago

How does a margin affect my ability to secure an open position?

Andrew Moran

Tuesday, August 03, 2021

In finance, the margin is the money borrowers from a broker or an exchange to buy investments, particularly stocks. This is also the difference between the total value of an investment and the loan amount.

Typically, the collateral for a margin account represents the cash that is deposited in the trading account or securities provided by the broker.

Moreover, the broker might trigger a margin call if a stock falls way below the purchase price.





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