Financial Education

Margin (Brokerage)

Borrowed funds to trade; amplifies gains/losses

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Trading

Margin (Brokerage)

Borrowed funds to trade; amplifies gains/losses

Definition

Margin allows trading with borrowed money, amplifying both gains and losses. Initial margin is deposit required; maintenance margin is minimum equity level. Margin calls occur when equity falls below maintenance level.

Related Topics

#leverage #borrowed funds #amplification #margin calls

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Category: Trading

Trading concepts cover market mechanics, order types, liquidity, and execution strategies.

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