yandex watch
forex ask logo
forex ask banner
Welcome, Guest

Forgot Password

Not yet a Member? Register Here

Loader
Question Details
Username: PrettyWoman

Rating:
Guru Stars

Asked to: Apinya Kamon

Date Created: 16 Jun 2017
Category 17
Tag Financial
Question What is a 'Margin Account'?
Advice from Guru
Hello PrettyWoman,

A margin account is a brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities and cash. Because the customer is investing with a broker's money rather than his own, the customer is using leverage to magnify both gains and losses.

For example, an investor with $2,500 in a margin account buys Company A’s stock for $5 per share. With the broker's $2,500 loan, the investor purchases $5,000 of Company A’s stock and receives 1,000 shares. The stock appreciates $10 per share, and the investor makes $10,000.

List of Gurus

  • Guru Most read Heng Kim
    Heng Kim

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru Most read Anton Luyten
    Anton Luyten

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru Most read Chaoxiang Lee
    Chaoxiang Lee

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru Most read Apinya Kamon
    Apinya Kamon

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru Most read Tom Burke
    Tom Burke

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more
  • Guru forex ask most-read Heng Kim
    Heng Kim

    Hi Fluffy, An ETF, or exchange-traded fund, is a marketable security that

    Read more
  • Guru forex ask most-read Heng Kim
    Heng Kim

    Hello PrettyWoman, The price at which the maximum volume of orders can be

    Read more
  • Guru forex ask most-read Tom Burke
    Tom Burke

    Hello Andrew, A profit and loss statement (P&L) is a financial statement

    Read more
  • Guru forex ask most-read Talitha Taslim
    Talitha Taslim

    Hi BobM, Wei is the smallest denomination of ether, the cryptocurrency coin

    Read more
  • Guru forex ask most-read Dara Madee
    Dara Madee

    Hi Fluffy, Offshore identifies any item that is located or based outside of

    Read more
  • Guru forex ask newest Heng Kim
    Heng Kim

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru forex ask newest Anton Luyten
    Anton Luyten

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru forex ask newest Chaoxiang Lee
    Chaoxiang Lee

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru forex ask newest Apinya Kamon
    Apinya Kamon

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru forex ask newest Tom Burke
    Tom Burke

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more