RSS Margin Account vs. Cash Account

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 RSS Margin Account vs. Cash Account

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To trade securities, you need to open an account with a brokerage company. Stock brokers offer two main types of accounts, cash accounts and margin accounts. Trading on a cash account with securities taken on credit is excluded, and on a margin account, it is possible upon making a preliminary pledge. In other words, in the first case, you sell only those stocks that you bought earlier. In the second, you can sell shares even if you do not have them, use the purchased shares as collateral for a loan, and use trading on margin, that is, trading with leverage.... Read full author’s opinion and review in blog of #LiteFinance
 
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