Recommended for Finance Students

Thursday, August 14, 2014

Margin Trading (MBA)

Dear MBA students,

Margin trading is one of the essential ideas for liquidity in stock market. Imagine, what can happen if you are allowed to borrow 80 to 90% of trade value without interest! You could do a lot of things with the leverage you get through Margin Trading.

In other words, margin trading allows you to add 0's (zeros) in your trade. We know that a zero doesn't have any value unless it is appended at the end of a non-zero digit. Your initial margin is that non-zero digit, and debit balance is the additional 0's you put after that.

Enjoy margin trading.

Margin Trading PPT
Margin Trading Lecture 1
Margin Trading Lecture 2

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