14:51 Jul 5, 2020 |
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Chinese to English translations [PRO] Bus/Financial - Other | |||||||
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Summary of answers provided | ||||
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4 | margins / stock trading on margin |
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Discussion entries: 2 | |
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margins / stock trading on margin Explanation: Margin allows investors to buy securities by borrowing money from a broker. Margin: Money that an investor has borrowed from a broker in order to buy securities. An investor who buys on margin can realize huge gains if the price of the security moves in a favorable direction; however, he/she also takes on a great deal of risk because it may not move in such a direction. https://financial-dictionary.thefreedictionary.com/margins Buying on margin involves borrowing money from a broker to purchase stock. A margin account increases your purchasing power and allows you to use someone else's money to increase financial leverage. Margin trading confers a higher profit potential than traditional trading but also greater risks. https://www.investopedia.com/ask/answers/041315/why-purchasi... |
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