Leverage
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| Enables a trader to buy or sell a security or derivative and receive fair value for it using borrowed capital to increase investment return. | ||
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Additional Comments:
Also called margin. The ratio of the amount used in a transaction to the required security deposit.
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Related Terms: | ||
Margin A deposit made by a trader with a clearinghouse to ensure that he/she will fulfill any ... Margin Call The brokerage's demand that a customer deposit a specified amount of money or securities when a ... Initial Margin The initial deposit of collateral required to enter into a position as a guarantee on future ... | ||
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