The amount of liquidity you have available to buy securities is called buying power. It’s also known as excess equity, and refers not only to the cash available for buying assets but also the ...
Matt Lee is the founding partner of Atlas Growth Capital. He has 3+ years of experience as a consultant and startup advisor. Thomas J Catalano is a CFP and Registered Investment Adviser with the state ...
Margin trading allows investors to borrow money from a brokerage to increase buying power. While it offers the potential for larger returns, it also increases the risk of losses that can exceed the ...
Buying power — which is different from purchasing power when it comes to investing — is the amount of money an investor has on hand to buy securities, cryptocurrency, options or any other kind of ...
If you were to invest $10,000 in a good stock and get a 20 percent return, you’d make $2,000. But what if you could have borrowed another $10,000 to buy more stock and doubled your profits? When ...
Friday was also an options expiration event, which added to the selling pressure in the market when the virus news hit. When investors buy stocks on margin, they must deposit an initial amount, ...
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Michael is a former senior editor of investing and trading products for ...