13. Explain "buying on the margin.”

History

1 answer:

IRISSAK [1]3 years ago

7 0

Answer: Buying with margin means buying an asset using leverage and borrowing a bank balance

Explanation:

Buying with margin means buying an asset using leverage and borrowing a bank balance. It refers to the initial payment made to the bank for the asset that is purchased. The margin values in the investor's account are the guarantee of the borrowed funds. Before buying, the investor must be approved and open an account with the bank.

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