What is margins?
Answers: margin mens a type of security deposit for example if rate of a share is 100 rs and margin is 20% meaning that u have to deposit 20% of total cost of that stock ro trade. in f & o segment margin is charged as per the volatility in that particular stock. the price of that stock go below the margin money u have to deposit fresh margin or ur stock will be sold by broker that happend in recent mayhem of stock market.
You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to this free site, recognized by Y! A as a "Featured Knowledge Partner":
http://investopedia.com
Investopedia also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with your own hard-earned money.
http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Margin is a special type of trading option allowed by some brokers. In this type of trade you do trading by having only a specified percentage of money called the 'margin amount' dedicated to trade. This allows you to trade in stocks without having the complete money to trade in.
For example if the broker specifies that margin for trading a stock is 20%, it means that u need to have only 20% of the actual trade amount in ur account. This means that with a given amount in your account you can trade 5 times more than that of the amount you have.
Small Investment...Advisory Help Reqd.?
I have one Lac Rupees near me to spare for 6 months. In Indian financial market, which is the best alternative to invest the same which should carry me better results also ??Answers: Invest in Silver. Back surrounded by 1980, gold sold for $850 and silver sold for $50. Then, one ounce of gold ingots would buy 17 ounces of silver. Today with gold ingots near $900, one ounce of gold ingots will buy a whopping 55 ounces of silver. It seems to me that silver, contained by terms of gold ingots, is "too cheap."
The bull run for Gold and Silver has be strong since 2002 making about 40+% annually. They should both verbs to be a great investment in this type of inflationary environment brought on by the half-hearted US dollar, growing deficit, major growth overseas, etc. We hold yet to see the principal parabolic phase that puts a final cap on this bull run.
You can buy and go silver at your local coin shop. I recommend buying 1oz or 10oz bars. If you own a trading account, you can slickly buy and sell silver beside ticker symbol "SLV". The great thing something like SLV is you don't need to store it physically and you can trade it rapidly.
Can you in recent times increase your border details to prevent from have to cover a short?
In other words, if it comes to needing to cover a short because you do not hold enough within your margin statement, can you just give money or increase whatever collateral to that leverage and prevent yourself from have to cover in an instantaneous situation?Answers: If that's your plan... put within the cash back you hit a margin call for.
It sounds like you've broken one of the focal rules of investing; Always have an exit plan up to that time you make the trade. It's incredible that you didn't put a stop on this when you made it (in this defence, a "buy stop").
The number one rule of investing is;"
Always understand what you're investing within.
So.. you've broken two basic rules (that anyone would know have they taken the time to read a few books on investing).
I'm not trying to be cruel (or sound close to an idiot)... I hope you take this as a wake up up call!
Assuming you own enough soft assets to add to your report, you should be able to make happy a margin hail as that way instead of have to cover a short position.
Remember that solution only works if your broker is ready and able to contact you rapidly when a margin ring up occurs.
Yes. You can do that. You can any add brass or additional marginal securities. One big guardedness about doing so. During the first few days of the Oct. 29 crash, associates were adding together cash and securities to their fringe account to cover their call. As the market continued to drop approaching the proverbial rock, their additional border got wipe out also. They would have be much better off, walking away beside their initial loss.