margin trading


Also found in: Dictionary, Wikipedia.
Related to margin trading: short selling

Margin trading

Buying securities, in part, with borrowed money.

Margin Trading

Trading securities that an investor has bought with money borrowed from a broker for that purpose. An investor who trades 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. See also: minimum maintenance, margin call.

margin trading

The buying and selling of securities in an account in which money is owed to the brokerage firm.
References in periodicals archive ?
In addition to offering 100x crypto margin trading with the lowest commission fees, PrimeXBT also features a selection of the world's most popular traditional financial instruments in forex, indices, and commodities with varying leverage of up to 500x.
"No, they are not allowed," said NSE in response to our queries.Not finalisedThe Capital Markets Authority, the regulator, is yet to finalise facilitating regulations for margin trading, which it said in Masterplan 2014-23 would have a positive effect on liquidity.
Futures and margin trading are not the only option of shorting cryptocurrencies.
- SECP approving the addition of 28 securities in the Margin Trading System (MTS) and Deliverable Future under category 'B'.
According to official statistics, the margin trading accounted for 27.8 per cent of the total transactions conducted at ADX and DFM during the period from January till March 2017, which totalled AED 131 billion.
Margin trading is suitable for investors with greater risk appetite and more experience in trading.
The Group Securities, one of the11 stock intermediaries, will be allowed to execute margin trading on the QSE after completing the preparations necessary to put the decision into practice in collaboration with the Qatar Central Securities Depository, a bourse spokesman said.
"And the intervention raises a thorny question: Who takes the blame if the securities firms suffer losses because they had to make investments against their better judgment?" Concerns run high over falling stock prices; high levels of margin trading, or investors borrowing money from a broker to purchase stock; high-risk loans that depend on stock as collateral; and pressures on large institutions to hold stocks to maintain a price level in stock indices.
rules that would cap the size of the country's margin trading and
Prior to the issuance of the Margin Trading Rules, margin trading was only mentioned as a regulated activity under Law No.
Worries about a new probe by Chinese regulators into margin trading depressed sentiment in Chinese markets.
New market rules that allow margin trading and non-Bahraini brokers to trade will come into effect from today (September 1) at the Bahrain Bourse (BHB).