Elaborate Initial margin in the concept of Margin Trading?

Can some one help me with this question?
Add a comment

5 replies

"Initial margin: Amount Investor Puts up / value of transaction or It is the part of transaction’s value the customer must pay to initiate the transaction with other part being borrowed from the broker. Source: http://in.docsity.com/en-docs/Markets_for_Investment_and_Construction_of_Indexes_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
Add a comment
Purchasing along perimeter is actually borrowing dollars coming from a dealer to buy investment. You can think of it as being financing from the brokerage. Allowance dealing permits you to invest in more inventory than a person capable to normally. In order to buy and sell on border, you'll need a border consideration. This is different from an everyday dollars account, through which anyone trade with all the make the most your consideration. Legally, your own dealer needs to get your current signature to spread out a margin bill. The actual border bank account may be portion of your normal accounts opening arrangement or maybe might be a completely separate contract.
Add a comment