What is margin option trading



Day-Trading Margin Requirements: Know the Rules. The "Bunker Hunt Day" crash of the silver market on Silver ThursdayMarch 27, is one such example. Options involve risk and are not suitable for all investors. The probability of losing their entire capital at some point would be high. The SEC also published for comment substantially similar rule changes tradimg were proposed by the New York Stock Exchange NYSE.




The margin trading strategy of the investor was a high risk strategy that has historically paid off well for the investor. The stock market is a tough game especially the minor details of analysis and watching the charts. You must know margin trading. The brokerage house specifies minimum net worth requirements for investors utilizing margin trading due to the inherent risks associated therewith.

Show more usage examples Reproduction of all or part of this glossary, in any format, without the written consent of WebFinance, Inc. Term of the Day. Practice of buying stock with money borrowed from the broker. In this arrangementthe investor makes a cash down payment called wht margin with the broker and can purchase stocks worth about twice the cash amount.

Also, the investor has to put up additional cash in case the value of the stockholding falls below a certain amount. Margin trading is a double-edged sword - it cuts both ways. Use margin trading in oltion sentence. Browse Definitions by Letter:.




What is Margin?


“The margin trading strategy of the investor was a high risk strategy that has historically paid off well for the investor. ” Was this Helpful?. Margin Calculator. This online calculator contains a description of Exchange margin requirements for various positions in put options, call. CBOE. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of.

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