2007-11-24 16:52:47 · 5 answers · asked by newtoshares 1 in Business & Finance ➔ Investing
A margin loan at Charles Schwab cost 10.25% not a cheap way to borrow money but if you only want to buy now then transfer money from checking later it might be ok.
2007-11-24 17:13:04 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
Its like credit. If you have 100 shares of A worth a total of $100. You can buy $100 worth of B.
If the market or the stock goes south, they may do a margin call, and you'd have to back up that B stock with $100.
Margin isn't a good idea for the novice or intermediate trader.
2007-11-24 16:59:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That's basically when you borrow money to trade. You're 'betting' that you'll earn more with the trade than the borrow will cost you. Risky business.
2007-11-24 17:00:10 · answer #3 · answered by The Zabler 2 · 0⤊ 0⤋
That is where you trade on margin.
2007-11-24 16:56:37 · answer #4 · answered by kc 4 · 1⤊ 2⤋
It;s borrowing money from your brokerage firm to buy more shares than you can afford with the value of your account. Ex. if you have $5,000. in your account you can buy $10,000. worth of stock
2007-11-25 09:19:30 · answer #5 · answered by ijokey2000 2 · 0⤊ 0⤋