Margin – The amount of equity contributed by a customer as a percentage of the current market value of the securities held in an account.
TRADING GLOSSARY
Margin Account – An investment account in which the Forex Broker lends the customer funds to facilitate a purchase. The loan in the account is collateralized by money that the customer has with the broker along with the actual securities purchased. If the value of the position bought on margin drops to a level determined [...]
Margin Call – A brokerages demand on an investor trading with margin to deposit additional funds or securities to bring the Margin Account up to the minimum maintenance requirement. Margin calls occur when an account value depresses to a value calculated by a brokerages particular formula.
Margin trading is trading using borrowed funds . In other words leveraged trading.
▪ By placing a ‘good faith’ deposit, investors are able to control a much larger asset, hence giving them far greater market exposure for a fraction of the cost
▪ Trading on margin involves meeting margin requirements at all times
▪ Failure to meet margin [...]
Market Order – An order to buy or sell a lot at that minute, whatever the current market price is.
Market Price – The price that a security or currency position is being traded for within the market or on the exchange at any particular moment.
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