 |
Definition of 'Margin Debt'
1. The dollar value of securities purchased on margin within an account. Margin debt carries an interest rate, and the amount of margin debt will change daily as the value of the underlying securities changes.
2. The aggregate value of all margin debt in a nation or across an exchange.
|
 |
Investopedia explains 'Margin Debt'
1. When setting up a margin account with a stock brokerage, the typical maximum for margin debt is 50% of the value of the account. In order to prevent a margin call (a request to raise collateral in the account), the margin debt must remain below a specified percentage level of the total account balance, known as the minimum margin requirement.
Not all securities are available to be purchased with margin debt, especially those with low share prices or extreme volatility. Different brokers have different requirements in this area, as each may have its own list of marginable securities.
2. Margin debt levels, and their rate of change, are sometimes used as an indicator of investor sentiment because margin debt rises when investors feel good about the prospects in the stock markets. In the past, margin debt levels have peaked at the same time market indexes reached relative peaks. When markets decline in a hurry, a large number of margin calls will usually come due, which can add to already heightened selling pressure.
|
Search results for 'Margin Debt'
-
http://www.investopedia.com/articles/stocks/07/peer-comparison.asp
... Name, Ticker, ROE, ROA, Gross Margin, Operating Margin, Profit Margin, Debt/
Equity, Expected Annual Earnings Growth. McDonald's Corp. MCD, ...
-
http://www.investopedia.com/exam-guide/series-7/customer-accounts/stock-price-change-margin.asp
... As a result, your client now has excess equity, defined as the total value
of cash and securities in a margin account, less margin debt: ...
-
http://www.investopedia.com/ask/answers/06/leverageandmargin.asp
... In this situation, both gains and losses are amplified. Margin is a form of debt
or borrowed money that is used to invest in other financial instruments. ...
-
http://financialedge.investopedia.com/financial-edge/0710/5-Ways-Debt-Can-Make-You-Money.aspx
... Debt can be used as leverage to exponentially multiply your returns ... Margin Investing
Investing on margin allows you to buy a higher dollar amount of stock than ...
-
http://www.investopedia.com/exam-guide/series-7/debt-securities/government-debt.asp
... 4.5 Government Debt; 4.6 Treasury Bonds; 4.7 Agency Bonds; 4.8 Treasury STRIPS;
4.9 ... 10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...
-
http://www.investopedia.com/exam-guide/series-7/debt-securities/compute-treasury-discount-yield.asp
... 4.5 Government Debt; 4.6 Treasury Bonds; 4.7 Agency Bonds; 4.8 Treasury STRIPS;
4.9 ... 10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...
-
http://www.investopedia.com/exam-guide/series-7/debt-securities/treasury-strips.asp
... Debt Securities - Treasury STRIPS. Debt instruments generally consists of
both principal and interest payments. When that debt takes ...
-
http://www.investopedia.com/exam-guide/series-7/debt-securities/corporate-bonds.asp
... 4.5 Government Debt; 4.6 Treasury Bonds; 4.7 Agency Bonds; 4.8 Treasury STRIPS;
4.9 ... 10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...
-
http://www.investopedia.com/articles/stocks/10/leverage-investing-strategy.asp
... laws. Conversely, margin debt can be called any time you fall below the
high margin levels dictated by brokerage companies. Long ...
-
http://www.investopedia.com/exam-guide/series-7/debt-securities/accrued-interest.asp
... 4.5 Government Debt; 4.6 Treasury Bonds; 4.7 Agency Bonds; 4.8 Treasury STRIPS;
4.9 ... 10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...
|
|
