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How does a margin account work? PDF Print E-mail

Margin is the idea of buying securities on credit. This credit is calculated by the amount of equity within your account. When you engage in day trading you will use your equity coupled with margin to maximize your buying power. Your daily buying power is based on the previous business day's closing position values. For example, margin equity and closing position values for Monday the 1st will be used to calculate the buying power available for use on Tuesday the 2nd.

In order to trade using margin, you must familiarize yourself with the margin rules and the "calls" they can create. To help our traders better understand these terms, we have provided a worksheet that thoroughly explains these concepts.

The worksheet has been divided into three sections:  
  •  The specific call type    
  •  How to avoid generating the call    
  •  How to satisfy a call
Please download the worksheet here.
 
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Please note: There is a risk factor involved in electronic trading, and it can result in substantial loss. You should therefore take into account the crucial factors of your financial status and resources before opting for such trading solutions. Please click here for more information. Money Laundering Prevention

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