In finance, the margin is the collateral that an investor has to deposit with their broker or exchange to cover the credit risk the holder poses for the broker or the exchange. An investor can create credit risk if they borrow cash from the broker to buy financial instruments, borrow financial instruments to sell them short, or enter into a derivative contract. Opening a trade with too… Continue reading What is Margin?
Month: August 2023
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Debit and Credit-Definition, Examples, Differences, Rules, Problems & Solutions Notes with PDF
Debits and Credits are an important concepts in accounting, every accounting learner should understand what is debit and what is credit before learning accountancy. For every transaction, one or more elements of the accounting equation are changed, i.e., one element increases or one element decreases. According to the opinion of modern accountants, the debit and… Continue reading Debit and Credit-Definition, Examples, Differences, Rules, Problems & Solutions Notes with PDF