What is stock margin mean?
The minimum of fund required to trade and rest fund will be on hand of broker
. Whether it’s short position or long position.
Buying stocks on margin means investors are borrowing money from their broker to purchase stock shares. The margin loan increases buying power, allowing investors to buy more shares than they would have been able to, using only their cash balance.
To buy stocks on margin, a margin account must be opened and approval obtained for the loan. If the stock’s price rises, the investor can sell the stock, repay the loan, and keep the profit. If the stock’s price falls, the broker may issue a margin call, requiring more cash or selling the stock. The loan must be repaid regardless of whether the stock rises or falls.