3) Margin Trading: The Dreaded Margin Call
The focus of this section of the tutorial is the maintenance margin and the dreaded margin call. A maintenance margin […]
The focus of this section of the tutorial is the maintenance margin and the dreaded margin call. A maintenance margin […]
Margin Trading is investing in stocks but this time it involves borrowing money from a broker to have more buying
Attaining the right mix between risk and return will be a big help to move you one step closer to
With the stock market being so unpredictable, individual investors need a safety net. To address this need, diversification comes into
The iron stomach test is synonymous to the risk-return tradeoff. An important investment decision that must be made is on
There are two basic risk types: Systematic risk Unsystematic risk Risk that could affect a broad spectrum of assets is
Risk is everywhere, whether doing something as mundane as drinking, walking, or whether investing. Your comfort with risk is generally
You can make a lot of money investing in stocks or trading in the stock market, but it is not
If you’ve overheard grown men in suits having drinks in a bar and talking about bulls and bears, chances are
Don’t be intimidated upon seeing a stock table like the one below. When you’re done reading this section, you’ll be
By now you already have knowledge of what a stock is and the principles behind the stock market. The next
Stock prices are driven by the law of supply and demand. If the demand is high, i.e., lots of people
Stock exchanges are places where buyers and sellers meet and decide on price. This could be either physical or virtual.
The two main types of stocks are common stock and preferred stock. Common Stock This is the most common type
Stock is a share in the ownership of a company. It is a claim of the company’s assets and liabilities.