Buying On Margin Definition at Buying

Buying On Margin Definition. Buying on margin refers to the initial payment made to the broker for the asset—for example, 10% down and 90% financed. It is considered an advanced trading strategy, considering that the investor takes on a debt that must be paid in the future, as.

You must have a margin account. It’s an example of using leverage , which means utilizing borrowed money to increase your potential profit. Buying on margin refers to the initial or down payment made to the broker for the asset being purchased;

Receivables turnover ratio Definition Estradinglife

Margin is the money you contribute to buy shares on margin. A margin in your brokerage account is your brokerage firm allowing you to purchase more stocks than you can afford. Buying on margin means you are investing with borrowed money. To buy securities by putting up only a part, or a margin, of the purchase price and borrowing the remainder.