Posted by Henry on October 04, 2004
In Reply to: Margins? paper??? posted by platypus on October 04, 2004
: : : : :
: : : : : Need help:
: : : : : The terms of the deal will change on the margins.
: : : : : What does "change on the margins" mean here?
: : : : : Thanks!
: : : : On the periphery - the minor details, not central to the deal, will change.
: : : : DFG
: : : If I may say so, I believe an American would use the word "marginally" instead of "on the margins". The latter sounds distinctly British to me.
: : I agree it is in British use - I hadn't realised that it would not be used in the US(?)
: : DFG
: "terms of the deal" leads me to believe that we are not metaphorically speaking of paper margins/periphery. I don't know much about the stock market, but I know stock is purchased on "margins", or "margined". These margins fluctuate. Perhaps, someone with more knowledge on the subject would elaborate.
Margin trading is a way to increase the gearing (leverage) of your investments. You can magnify the profits from a deal, but also any losses!
"Margin trading facilities are currently available for the top 350 UK shares, over 500 leading US shares and several hundred major European shares. Margin trading has substantial advantages over normal share dealing:
Gearing; You can take a position in a stock without having to put up the full contract value. Instead, you put up a margin deposit as collateral. The margin is normally around 10% of the contract value."