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The act of “going on margin” means borrowing money from the custodian of your account, in order to purchase additional securities. Another way of saying this is that you are “leveraging” your account.
Investors who go on margin are trying to pump up gains in their account, but doing so means taking the risk of outsized losses if you are wrong. To take an account on margin is not free - the custodian will charge interest for the loan, and will essentially use the assets in your account as collateral.
What is 'Buying on Margin' and Margin Trading?
What is a Margin Call?
The Security Market Line (SML) is a visualization of the Capital Asset Pricing Model (CAPM) and shows thee relationship between risk and return in trading
Options are contracts used by investors to take a speculative position (or hedge) based on expected future price movements
You may hear differences about the amount of life insurance you need. One is take your annual income and multiply it by 10
Whether or not you need a trust depends on several factors, some of which include: your level of assets, the...
A non-current asset is an asset on the balance sheet that is not expected to convert into unrestricted cash within a year
REPO is shorthand for Repurchase Agreement. It is a money-market practice to buy/sell government securities overnight
Investment grade refers to the highest quality of debt available, and usually means the bond has little risk of default
Counter-party risk is the risk that the person on the other side of the trade will not meet his or her obligations
Earnings surprises occur when the reported quarterly or annual earnings of a company are different than they were...
The Triple Tops pattern appears when there are three distinct minor Highs at about the same price level