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The definition of a margin loan in it's simplest term would be a loan which is taken out to finance the purchasing of equity , usually in the form of some sort of stock. The loan is normally requested and agreed by the same stock broker that the customer is using to trade with the equity they wish to purchase from.
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What is the difference between buying on margin and margin call?
Buying on margin, taking a "margin" loan from the broker to help buy part of a stock purchaseMargin call, this happens when the broker demands full payment of your "margin" loan
What is mean by margin in bank loan?
security for your sanctioned amount. If you need more than 4 lakhs as a loan then a margin of say 15% is needed.
Definition of a drawdown loan?
Loan draw down is withdrawing the money as in the disbursement of the loan.
What is the difference between margin and collateral in terms of securities trading?
In securities trading, margin is the amount of money borrowed from a broker to buy securities, while collateral is the assets or funds used to secure the loan. Margin involves borrowing money to invest, while collateral is the security provided to ensure the loan is repaid.
What is the definition of the phrase loan syndication?
The definition of the phrase syndication loan is: "A loan offered by a group of lenders who work together to provide fund for a single borrower." The borrower could be a corporation, a large project or a government.
