跟着我一起飞
:
In stock trading, “margin” (margin) refers to the practice of investors borrowing money from a brokerage company to buy shares. Simply put, investors only pay a portion of the capital (security deposit), and the brokerage company lends the rest.
Here are some key points of margin trading:
1. **Initial deposit**: The minimum percentage of capital that investors are required to pay when buying shares. For example, if the initial margin requirement is 50%, investors only pay half of the share purchase price, and the brokerage company lends the rest.
2. **Maintenance Margin**: The minimum level of equity that must be maintained in the account during the period of holding shares. If the account value falls below this level, the brokerage company will issue an additional margin call (margin call) requiring investors to deposit more funds or sell some shares to restore the account's margin level.
3. **Leverage effect**: Margin trading can increase investors' purchasing power and amplify returns, but it also amplifies risk. If the stock price falls, investors may face greater losses, or even more than their initial investment.
Margin trading not only increases potential returns but also increases investment risk, so it should be used with caution.
jiecheng1314 : time to buy the dip
103926149 : The boss has always been on the margin
103469492 OP 103926149 : What does margin mean?
103926149 : Go down to Google
跟着我一起飞 : In stock trading, “margin” (margin) refers to the practice of investors borrowing money from a brokerage company to buy shares. Simply put, investors only pay a portion of the capital (security deposit), and the brokerage company lends the rest.
Here are some key points of margin trading:
1. **Initial deposit**: The minimum percentage of capital that investors are required to pay when buying shares. For example, if the initial margin requirement is 50%, investors only pay half of the share purchase price, and the brokerage company lends the rest.
2. **Maintenance Margin**: The minimum level of equity that must be maintained in the account during the period of holding shares. If the account value falls below this level, the brokerage company will issue an additional margin call (margin call) requiring investors to deposit more funds or sell some shares to restore the account's margin level.
3. **Leverage effect**: Margin trading can increase investors' purchasing power and amplify returns, but it also amplifies risk. If the stock price falls, investors may face greater losses, or even more than their initial investment.
Margin trading not only increases potential returns but also increases investment risk, so it should be used with caution.
103469492 OP 跟着我一起飞 : Thank you so much for explaining
Thank you so much