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13. Explain "buying on the margin.”

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Jolus Jolus
  • 27-10-2019

Answer: Buying with margin means buying an asset using leverage and borrowing a bank balance

Explanation:

Buying with margin means buying an asset using leverage and borrowing a bank balance. It refers to the initial payment made to the bank for the asset that is purchased. The margin values ​​in the investor's account are the guarantee of the borrowed funds. Before buying, the investor must be approved and open an account with the bank.

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