Respuesta :
The amount you borrow from your broker as stock margin to invest in a certain stock or asset. The allowed Margin is determined by your broker and the Stock Margin trading is the practice of taking out a loan from your broker and using the proceeds to purchase stocks.
What is stock margin:
Stock Margin, which is determined as the difference between the total value of the investment and the loan amount, is the sum of money borrowed from a broker to pay for an investment.
Stock Margin trading is the process of using money borrowed from a broker to trade a financial asset that serves as security for the broker's loan.
Margin trading is the practice of individual individuals purchasing more stocks than they can afford to in the stock market. In India, intraday trading is sometimes referred to as margin trading, and several stock brokers offer this service. Securities are bought and sold during a single session of margin trading.
The procedure is not too difficult. You can purchase more shares of a stock than you can afford at any given time with the use of a stock margin account. The broker would maintain the shares as collateral and lend the money to buy them for this reason.
Learn more about Stock margin:
https://brainly.com/question/19577457
#SPJ4
