What margin means in stock trading

[Heatman]

Margin

A margin account allows an individual to acquire cash (apply for a line of credit, basically) from a representative to buy a venture. The contrast between the measure of the advance and the cost of the protections is known as the margin.

Exchanging on margin can be risky because, in case you're off-base about the bearing in which the stock will go, you can lose huge money. You should regularly keep a base equilibrium in a margin account

Seriously, I don't really have any knowledge on how to trade on stock right now so I don't understand what margin is all about but I'm actually glad that you took time to explain it here and it's very understandable.

 

[Sotherefore]

Thanks for this , at least I have learnt some things, that means really that stock trading is just like cryptocurrency trading or Forex.. but I have not seen someone making money from stock trading compared to cryptocurrency trading and forex trading.

 

[HayKay]

Interesting and educative. I've been seeing this margin terminology and never understood what it meant up till now.
It means it's better one goes in with funds and not borrow because we're trying to invest in the name of investment.
Well taught poster.

 

[Kaffyfolla]

Margin refers to the amount of equity an investor has in their brokerage account. "To margin" or "buying on margin" means to use money borrowed from a broker to purchase securities. You must have a margin account to do so, rather than a standard brokerage account

 

[greenie]

In the stock market, margin trading refers to the process whereby individual investors buy more stocks than they can afford to. Margin trading also refers to intraday trading in India and various stock brokers provide this service. Margin trading involves buying and selling of securities in one single session. Over time, various brokerages have relaxed the approach on time duration. The process is fairly simple. A margin account provides you the resources to buy more quantities of a stock than you can afford at any point of time.

 

[tyrim88]

The aspect of buyingstock on margin from your brooker or rep is actually a good one,but one of the thing there is that the tock could actually fluctuate in price ,and that would be a big loss to the investor.

 

[Lynaia]

I belief to margin or to buy on margin means to use money you borrowed from a broker to purchase security but you must have a margin account before to do so.

 

[Setho]

Margin in stock trading simply means that it is the amount of money in which you are able to risk in a trade or at least the amount of risk that you are willing to take for your trade to materialize.

 

[Danny4cash]

I read somewhere that margin is very important in trading. I don't know much about it as I'm not a trader for now. There are something any one that want to understand crypto trading must know. I think margin is one of them.

 

[frederick_9]

Buying stock on margin involves borrowing money from a professional.
You can think of it as a loan from your lender.
Margin trading enables you to buy more shares than you would otherwise be able to.
You require a margin account in order to trade on margin.