Margin account

Margin account,

Definition of Margin account:

  1. A type of brokerage account which allows investors to purchase securities with borrowed funds, requiring a deposit of cash or assets as collateral to cover the risk on such transactions.

  2. Cash or securities deposited by a speculator with a stockbroker as the margin requirement for the securities purchased with a loan advanced by the stockbroker. The value of a margin account is usually one-half of the loan.

  3. A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products. The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate. Because the customer is investing with borrowed money, the customer is using leverage which will magnify profits and losses for the customer.

  4. If an investor purchases securities with margin funds, and those securities appreciate in value beyond the interest rate charged on the funds, the investor will earn a better total return than if they had only purchased securities with their own cash. This is the advantage of using margin funds.

How to use Margin account in a sentence?

  1. Margin increases the profit and loss potential of the trader's capital.
  2. A margin account typically allows a trader to trade other financial products, such as futures and options (if approved and available with that broker), as well as stocks.
  3. When trading stocks, a margin fee or interest is charged on borrowed funds.
  4. He had a margin account which let him borrow up to half the cost of the stock he wanted.
  5. A margin account allows a trader to borrow funds from a broker, and not need to put up the entire value of a trade.

Meaning of Margin account & Margin account Definition

Margin Account,

What is The Meaning of Margin Account?

  1. A margin account is a brokerage account where a broker gives money to clients to buy stocks or other financial products. Account loans are obtained from bonds and cash that have been purchased and earn regular interest. Since the customer invests the loan money, he uses a leverage that increases the customer's profit and loss.

    • Margin accounts allow traders to borrow from a broker without specifying a trading amount.
    • Margin accounts generally allow traders to trade other financial products, such as futures and options (if approved and available through brokers) and stocks.
    • Margins increase the chances of big gains and losses for traders.
    • When there are trading stocks, a margin or interest rate is charged on the borrowed funds.

  2. Definition of Margin Account: An investor's account is with a broker where the broker pays investors to buy shares, etc., which are then used as collateral for the loan.

  3. An investment account that allows you to buy securities with funds borrowed from a broker at a certain interest rate.

Literal Meanings of Margin Account

Margin:

Meanings of Margin:
  1. The edge or edge of something.

  2. Quantity or insufficiency of something.

  3. Specify a limit or margin.

  4. Deposit funds as collateral with a broker (for accounts or transactions)

Sentences of Margin
  1. East coast of the Indian Ocean

  2. Convinced won by a lead of 17 points

  3. Yellow striped leaves

  4. The new agreement is different from the result of the previous agreement

Synonyms of Margin

perimeter, border, majority, fringe, limits, bound, edge, difference, extremity, brink, brim, side, degree of difference, rim, measure of difference, periphery, amount, gap, verge, bank, boundary

Account:

Meanings of Account:
  1. Details of reports or events or experiences.

  2. A record or report of financial income and expenditure relates to a specific period or purpose.

  3. An agreement under which an organization raises funds on behalf of consumers or provides goods or services to customers for credit.

  4. An agreement that gives a user personal access to a computer, website or application, usually by entering a username and password.

Sentences of Account
  1. A detailed explanation of what has been achieved

  2. The general ledger accounts for all income and expenses

  3. Your visit will not be considered successful

Synonyms of Account

view as, judge, consider, look on as, adjudge, think, weight, explanation, narration, hold to be, moment, exposition, sketch, note, significance, journal, regard as, rendition, news, recital, interest, mark, import, momentousness, narrative, tale