Monday, July 15, 2013

Money Margin

Stock price fluctuations to mitigate the risks associated with stock exchanges have arranged the margin money. for example if someone within a company to buy shares and 1,000 a share price is 100 bucks. in this case who will be giving a million bucks to your broker bought stock to the buyer for today. the next day to pay your broker after broker exchange a day it is. Pays the total amount at the moment many times buyers decide. your Broker finds the way to not give a million bucks to buy stock of the investor (buyer) to advance some amount as your broker must give the money to the initial token. margin.

Why is the margin:

Margin money is phisad then the investor will be giving a million to buy shares of 15 thousand. the stock fell 10 bucks 100 bucks now by the end of the day the whole 90 bucks longer would give a million bucks if the stock price increases, 10 bucks. seller would sell the shares at a loss in order to complete the deal seized on the margin money.. that is why the full amount of investment on the buyer and the seller Selling pressure on the stock.