Sentences with phrase «margin deposit»

A margin deposit refers to the amount of money that an investor needs to put down when borrowing money to buy stocks or other investments. It acts as collateral or a form of security for the lender. The margin deposit is typically a percentage of the investment's value, and it helps ensure that the investor will repay the borrowed funds. Full definition
If the futures value moves too far in the wrong direction, the trader may be required to provide additional money to maintain the required level of margin deposit.
Although the seller of an options contract is required to deposit margin to reflect the risk of its obligation, he or she may lose many times his or her initial margin deposit.
To do this would require the suitable margin deposit for a Crude futures contract because you have unlimited risk, assuming the option is uncovered (naked).
Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open.
Margin Call: This occurs when a request / demand is made from a futures brokerage firm, such as Cannon Trading Co, to one of its clients to bring margin deposits up to initial levels for a particular futures contract / position.
Margin Call A call from a clearinghouse to a clearing member, or from a brokerage firm to a customer, to bring margin deposits up to a required minimum level.
They identify day trades as those committed to close on the same day as a condition of enjoying halved margin deposits.
The update covers the 100 % owned Yamarna project and the Gruyere Joint Venture with Gold Fields (50 %) and follows targeting of additional high margin deposits to supplement the Gruyere development last year.
Leverage is the mechanism whereby your CFD margin deposit controls an asset of multiple times greater value, offering a magnified trading impact and accelerated return.
Margin deposits guarantee the fulfillment of the contract, even if the contract's market value changes or if one of the parties is unable, or refuses, to complete the deal.
Instead, they've taken to pricing relative to each exchange's specific margin deposit rate (i.e., on Intercontinental Exchange (ICE) this is the deposit rate «IDR»).
All orders are credit vetted before being executed and positions in accounts with inadequate margin deposits are liquidated automatically.
Leverage — Unlike the stock market, where you might have to actually spend up to $ 100,000 to buy $ 100,000 worth of a stock, through margin deposits, a commodities trader can leverage hundreds of thousands of dollars worth of a commodity for pennies on the dollar.
This required margin deposit also is referred to as a «performance bond.»
Treasury bond futures contracts provide the highest level of leverage against bond value changes.You can trade a contract worth $ 100,000 of Treasury bonds with a several hundred dollar margin deposit.
Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the Margin Available in your account will limit the size of the positions you can open.
Although there is no minimum margin deposit required to open a trading account with OANDA, the margin available in your account will limit the size of the positions you can open.
They identify day trades as those committed to close on the same day as a condition of enjoying halved margin deposits.
A call from a clearinghouse to a clearing member, or from a broker or firm to a customer, to bring margin deposits up to a required minimum level.
Take advantage of market opportunities, with only a margin deposit on the actual shares.
The Required Securities (margin deposit) is displayed on each pop - up trade screen.
This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit.
With only approximately $ 600 as a margin deposit, you could go long 1 corn futures contract with your Altavest Worldwide Trading, Inc. broker and if the price of the corn contract rose 30 - cents, you would reap the same dollar reward... $ 1,500... earning 250 % on margin, (less fees & commissions).
The sum of the margin deposit and the broker's advance equals the total cost of the trade.
You first have to pay a certain amount of money, called the margin deposit, in partial settlement of the transaction.
To trade futures you must put up a margin deposit worth 5 to 10 percent of the futures contract value.
This occurs when your broker notifies you that your margin deposits have fallen below the required minimum level because an open position has moved against you.
For example, with a futures contract, an investor could control $ 100,000 of a commodity, such as silver, with only a $ 5,000 deposit, known as a margin deposit.
Trading the E-mini contract directly requires a trader to put up a margin deposit for each contract traded.
The premium paid will be significantly less than the margin deposit required to trade the futures contract.
This is not a fee or a transaction cost but a portion of your account equity set aside and allocated as a margin deposit.
Your broker would require you to put up a margin deposit of at least 10 percent of the strike price times 100 shares, or $ 3,000 per contract, plus the premium received.
Your broker basically takes your margin deposit and pools them with everyone else's margin deposits, and uses this one «super margin deposit» to be able to place trades within the interbank network.
Because the margin deposit required to open a security futures position is a fraction of the nominal value of the contracts being purchased or sold, security futures contracts are said to be highly leveraged.
Because of the potential for a loss as a result of the daily marked - to - market process, however, a margin deposit is required of each party to a security futures contract.
Your broker will deduct the amount from your margins deposited with him and forward it to the stock exchange.
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