Margin Trading
Margin trading is a strategy where traders borrow funds from a broker to amplify their positions in stocks, commodities, currencies, futures, or options. By using leverage, it allows for larger trades than one’s own capital would permit, boosting potential profits. However, it also magnifies losses if the market moves unfavorably. Collateral, typically in the form of securities, secures the loan, and interest is charged on the borrowed amount. It’s a high-risk, high-reward approach requiring careful management.
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Free Float Market Capitalization
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Equity Trading
Equity trading involves buying and selling equity shares in secondary markets, via stock exchanges. Traders...
Dividend Yield
Dividend yield is a percentage ratio that measures the dividends paid per share relative to...
Free Cash Flow
Free cash flow (FCF) in accounting and earnings reports represents the cash a company retains...
Arbitrage
Arbitrage is a trading strategy that exploits small price differences for a security across markets...
