"• Margin Trading: This is the part of a transaction value that a customer has equity in the transaction. Use of Margin: to buy more, to borrow money Concepts associated with margin: • 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. • Maintenance Margin: The percentage of a security’s value that must be on hand as equity. • Margin Call: Demand from the broker for additional cash or securities as a result of the actual margin declining below the maintenance margin. Source: http://in.docsity.com/en-docs/Markets_for_Investment_and_Construction_of_Indexes_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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"Investment upon leeway isn't just playing. However , you tin attract some parallels involving allowance dealing along with the gambling house. Leeway is usually a excessive-threat strategy which could deliver a large net income when executed properly. Your dark side associated with margin is that you may shed ones clothing and some other belongings you're exhausting. One of several merely factors riskier than making an investment with tolerance is definitely investing about perimeter with no understanding what you're doing. This particular article will certainly educate you on what you ought to realize. "
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