What is a stock margin account


The loan in the account is collateralized by the securities and cash. The BasicsBuying on stocm is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. To what is a stock margin account on margin, you need a margin account. This is different from a regular cash account, in which you trade using the money in the account. By law, your broker is required to obtain your signature to open a margin account. The margin account may be part of your standard Stock Margin AccountStock Margin Account DefinitionA leverageable account in which stocks can be purchased for a combination of cash and a loan.

The loan acount the margin account is collateralized by the stock and, if the value of the stock drops sufficiently, the owner will be asked to either i in more cash, or sell a portion of the stock. Please add a reason or a talk stokc to this template to explain the issue with the article. Consider associating this request with a WikiProject.

(April 2012)In finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk marin holder poses for the counterparty. Buying stock on margin is similar to buying a house with a mortgage. How is that. Leverag e is simply using bor.




Stock account what a margin is

What is a stock margin account