Trading on margin is similar to a loan from a bank; only you are borrowing funds from your brokerage firm to purchase stock. Trading on margin allows a trader to purchase stock with less funds than with a regular trading account. It is necessary to obtain approval to open a margin trading account, and there is usually a minimum balance … [Read more...] about Trading Stocks With Margin: A Few Things to Keep in Mind
In the United States there are three types of margin trading accounts which are widely used. They are Regulation T margin, Portfolio margin, and SPAN margin. Portfolio and SPAN margin accounts usually offer lower margin requirements, which can allow the possibility of larger leverage to your trading account. Today we will discuss … [Read more...] about A Brief Overview of Three Types of Margin: Regulation T, Portfolio, and SPAN Margin.
I remember during market crashes in the past, Interactive Brokers (IB) increased the margin for many products.There was a lot of complaining about it on certain forums but I personally was happy to see the increased margins. As an IB customer myself, I like knowing rogue traders with too much risk are not going to destroy the brokerage … [Read more...] about Interactive Brokers Increases Margin Due to Brexit