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Margin Loan

Margin Loan

This is a discussion on Margin Loan within the Mortgage Calculator forums, part of the Mortgage and Loans Forum category; A margin loan or a margin account is a loan made by a brokerage house to a client that allows ...

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12-09-2010, 04:23 AM

Eugine

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Margin Loan

A margin loan or a margin account is a loan made by a brokerage house to a client that allows the customer to buy stocks on credit. The term margin itself refers to the difference between the market value of the shares purchased and the amount borrowed from the brokerage. Interest on the margin loan is usually calculated on the outstanding balance on a daily basis and charged to the margin account. As time goes by, the outstanding debt goes up and interest charges accumulate.

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