What is marginWhat is margin? In online trading, Margin is the amount a tr... More?
In online tradingWhat is online trading and how does it work? Online trading ... More, Margin is the amount a traderWhat is a trader? A trader is a person who buys and sells... More has as collateral to cover any losses incurred by a losing trade. It is measured as a percentage of the current marketWhat are value stocks? A value company is a company that app... More value of the held in the .
It can also refer to a loan taken out by a orderWhat is a trade order? In trading, an order can be defined... More to buy securities. This is known as “buying on margin”.in
In business, margin refers to the difference between the cost of producing a goods or service and its sale priceWhat are value stocks? A value company is a company that app... More.
Margin in online trading
Just asa trade carries a high risk, the margin has its own risks. For example, a trader buying on margin has to make payments on the loan, and must ensure there is enough in the margin account to cover themselves if the market moves against them.
Suppose you want to trade a $100,000 leverageLeverage is a means of increasing your potential return on i... More; your brokerWhat is an online broker? In online trading, a broker is a ... More will require $1,000 as securityA security is a financial instrument, such as stocks and sh... More from your account. The $1,000 can be seen as a deposit you have to make before you can control the $100,000. This deposit is known as a margin or initial margin.with a 100:1
The margin is usually expressed as a percentage of the position amount, meaning that the broker will require a 2%, 5% or 10% margin. So if you open an account with $10,000 and the margin requirement of the broker is 5%, the initial margin would be $500.
It is very important that you only trade sizes that will not harm your account and avoid any money managementMoney management refers to one of the most important concep... More in general:. Make sure you have a good knowledge on this matter and on
Margin in business language
Here, the margin is a difference between the cost of producing a goods or service and its sale priceWhat is price? The price is the measure of the value of good... More.
A sales strategy such as “pile it high, sell it cheap” can operate on a low margin because the profit is generated by the high volumeWhat is the trading volume? In trading, volume refers to t... More of sales. For high-end products, the margin will be much higher and the company will expect to sell fewer units but at a far higher profit.