Question
What is margin lending?
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1st Dec 2009 by Daniel Cross, ChFC
Margin lending is when money is loaned to investors through their brokerage account for stock (or derivative) purchases. It's an example if financial leverage and amplifies profit and loss when used. The margin amount is capped, usually no more than 50%. The exception is Futures trading in which the leverage used averages around 90% allowing for extreme volatility.
Margin lending is when money is loaned to investors through their brokerage account for stock (or derivative) purchases. It's an example if financial leverage and amplifies profit and loss when used. The margin amount is capped, usually no more than 50%. The exception is Futures trading in which the leverage used averages around 90% allowing for extreme volatility.
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27th Nov 2009 In Finance
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Subjects: margin lending,