What is Margin | Margin Call Explained

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6 жыл бұрын

Stock Margin is when you borrow funds from your broker to buy more stock. Margin can amplify your returns, but it can also hurt them if an investment turns against you.
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Пікірлер: 159

@LearntoInvest 5 жыл бұрын

I made a mistake in this video. At 2:30 I say that the account was now worth $12,250. What I should have said was that it was worth $12,500. And to make it even crazier. I did the rest of the math correct as if I had said the correct $12,500 the whole time. I apologize. It should have been 12,500, not 12,250. Oops!

@DewTime 4 жыл бұрын

Had to scroll to the comments to see if I was going crazy here. Glad to see it's the first comment!

@pulseman4407 4 жыл бұрын

I thought you paid the broker his comptions 250$😂

@majdsahmarany3091 4 жыл бұрын

And what if I tell you I was completely fine with the $12,250 and actually carried on with the example as if it’s a $12,500! Hahahahahaah no worries buddy it was a greatt explanation! Cheers

@jonshei 4 жыл бұрын

Almost made me think i was going crazy lol

@puseletsobushy8074 4 ай бұрын

The explanation was very great though. It helped me understand. We are human by the way

@jackwilson8651 3 жыл бұрын

Honestly, you could not have explained this in clearer terms. Excellent.

@kscarter1825 3 жыл бұрын

You would be surprised how many videos I went through to get a simple explanation on this. This video was great.

@NickPeitsch 4 жыл бұрын

This was exactly the video I was looking for! Well explained!

@yomi001 Жыл бұрын

This is the best video I've seen on how margin works. Very clear explanations and examples. Well done!

@ColinTalksCrypto 4 жыл бұрын

Thank you for a super clear description and examples of investing on margin!

@VinhNguyen-ul8yg 3 жыл бұрын

The best explanation of Margins I have seen. I now understand it better. Thank You!!!

@christosneophytou1238 3 жыл бұрын

Excellent Presentation, very clear explanations and you highlighted when interest is paid which is when you have a debt to the broker. This is probably the best you tube video on Margin, Margin Call, Maintenance Requirement. This is a channel worth subscribing. Very good work!!!

@sg3-h7u 3 жыл бұрын

Watched many videos about this but this one actually made it clear enough for me to understand! Whoop whoop 🙌🥳

@pololetigrou 3 жыл бұрын

Never saw anyone explaining IM so well. Thanks a lot!

@rashmis9123 2 жыл бұрын

What an explaination...at the end of the video..I literally said "WOW" loudly! love love it

@samrossi2641 Жыл бұрын

I had literally zero percent knowledge about any of this terminology or processes 5 minutes ago, and this was an extremely clear explanation that I don't feel the need to watch another video on this exact same thing

@ivelsoup 3 жыл бұрын

Amazingly well done! Answers everything, thank you!

@UU-ry6gt 3 жыл бұрын

best explanation I've heard! Thanks! We need more videos like this.

@DerkMiester 3 жыл бұрын

Wow, thank you for the clear and concise explanation of this!

@nasharcadia Жыл бұрын

Watched a few videos and this is by far the best explanation. Thank you!

@tommyharris5817 3 жыл бұрын

The BEST video on margin call tutorial.

@aleksandersalajczyk5405 3 жыл бұрын

Mistake or not video explains in simple terms what investing on margin and margin call is. Excellent. Now I understand the old saying "the only tip you can count on from you broker is a Margin Call"

@alpyoruk 4 жыл бұрын

As easy to comprehend as it gets, thanks!

@Alice-gl6um 5 жыл бұрын

Thank you so much for the video! Helped a lot!

@johnzarznia6814 6 жыл бұрын

Back to the basics I see. You explained this well!

@LearntoInvest 6 жыл бұрын

Thanks John, I appreciate the support

@HusseinDoha 3 жыл бұрын

@@LearntoInvest That's a great explanation.

@farhadahmadzad7730 3 жыл бұрын

Awesome, I just liked the examples and that made it super clear to me, thanks boss

@ellieinspace Жыл бұрын

You are so good at teaching! Thank you!

@majdsahmarany3091 4 жыл бұрын

Such a great video Nice work buddy

@alexgao4733 3 жыл бұрын

this is so clear, way better than textbook

@William_Webber 4 жыл бұрын

Thanks for this amazing explanation

@sanazhm 3 жыл бұрын

Very well explained. Thank you 👌🏼🌸

@EliteRoxor 3 жыл бұрын

The clearest explanation out there.

@brandonspiegel2293 5 жыл бұрын

thanks for the knowledge man!

@keventrudel7106 2 жыл бұрын

Im currently on margin call on one of my funds so thank you for the very Clair explanation

@e.sanoop110 2 жыл бұрын

Simple and beautifully explained. Thanks for making this vdo.

@tubeman1983 4 жыл бұрын

Well explained! Thanks!

@adarecords7013 4 жыл бұрын

Thanks bud!! explaned well

@kike_villa 3 жыл бұрын

I am here because of GME AMC... Great explanation, now I understand what is going on!

@engkeelau7736 3 жыл бұрын

Very clear! Thank you!

@Zeynep-zj3wh Жыл бұрын

Thank you for the direct and easy explanation

@elmamo2000 3 жыл бұрын

Thank you! Subscribed!

@sherifyousry5586 4 жыл бұрын

Thanks for this well explained video

@chukwuyemmartinsonyisi3993 5 ай бұрын

Wow this the best explanation so easy and clear

@ahmedtawfiq3625 3 жыл бұрын

Great explanation 🙌🏼

@sentinelese6717 Жыл бұрын

Wow...this was a really quick explanation.

@zilonggaming5469 7 ай бұрын

I appreciate this video, it helps me a lot.

@ajprasad6865 4 жыл бұрын

Hi Jimmy, u rule...great explanation!

@minhluudinh5522 11 ай бұрын

this channel is pure gold.

@toniok5428 3 жыл бұрын

Well explained ! From Paris

@chrisnjiiri8668 4 жыл бұрын

Good explanation..bravo

@jjenko6366 3 жыл бұрын

Very clear, thanks

@charlielee9012 Жыл бұрын

For those that are wondering how is the margin call price determined, it is initial stock purchase price x ( (1-initial margin) / (1-maintenance margin))

@rawhenrnh 3 жыл бұрын

Great explanation.

@abner6a Жыл бұрын

Amazing explanation!

@entrepreneurialhacks1255 Жыл бұрын

Thanks. Great video

@moly_y549 Жыл бұрын

Thanks. Very clear.

@danielelkadi3499 Жыл бұрын

excellent explination. thank you

@mathewojwando5195 2 жыл бұрын

Waw! Very well explained. 👍

@MrAmalthejus 5 жыл бұрын

Thank you

@angusmac2037 4 жыл бұрын

Great video my man! Can you use stocks you already own within the account instead of cash to meet the initial margin requirement ? In the video, you say he has $5000 “cash” and wants to invest in XYZ....what if he has $5000 in XYZ stock and wants to buy $5000 more and has no cash? I realize it says “buy more stock with that stock as collateral” above him but it’s not mentioned...Thank you for your patience!

@edwardchida2563 3 жыл бұрын

thoroughly explained

@WillN2Go1 2 жыл бұрын

Thank you, this is the best explanation I've been able to find on this topic. All the others talk about using 10x your investment as margin. To me they just seem like Russian roulette tutorials.

@cloudmaster3235 2 жыл бұрын

Likewise. I enjoyed this video .

@vartikajain6468 2 жыл бұрын

Great video

@SirDamned 3 жыл бұрын

well John, that's a real big tie you got there

@kylechampton Жыл бұрын

Very helpful

@ATIRadeonguy 4 жыл бұрын

Glad to know Jordan Peterson teaches finance now. :)

@s.a_mkhize 4 жыл бұрын

😹😹😹😹😹😹😹

@TheDonMan97 2 жыл бұрын

Stupid question: In your example, why can't the maintenance margin requirement just be 0%? Let's consider an example: Initially, Stock value per share = $1 Initial Margin Requirement = 50% Total shares to be bought = 10 000 My investment = $5000 Broker loan = $5000 My total portfolio worth = $10,000 Stock plummets to $0.5 My total portfolio worth is $5000 Now, the broker can still take back the loan they gave to trader by selling all his 10 000 shares. In this case, maintenance margin requirement = (my share of portfolio)/(Total worth of portfolio) = $0/$5000 = 0% What is the point of having a margin requirement bigger than 0% if they are always going to take the $5000?

@ARTECH112 Жыл бұрын

Thank You Sir

@HaIsKuL 4 жыл бұрын

So it's the minimum percentage of the value of your position minus the loan over the value. Anything less, you'll have to pay up to reach that minimum percentage. If not, shares will be sold with the loan subtracted and now you're at a significant loss.

@greaterbash1475 2 жыл бұрын

interesting clear and nice

@zorglub20770 5 жыл бұрын

Very clear explanation!

@greatestrecords3975 5 жыл бұрын

No to me its not

@greatestrecords3975 5 жыл бұрын

Do you het a Margin call after a 0 equilaty or after a 0 available money to invest

@palaniappant7884 2 жыл бұрын

Clearly done.

@paulfoustour2866 Жыл бұрын

you're a legend

@roydenpereira5726 3 жыл бұрын

nice one

@ChucksterJax 4 жыл бұрын

I watched this because I saw this morning the following headline and wanted to understand what was happening: "Coronavirus Could Trigger Mortgage Market Crash as First FDIC-Insured Bank Falls" and "Mortgage holders could be in trouble as the first FDIC-insured bank falls in West Virginia." High-risk mortgage notes are vulnerable to being called, which would make mortgages due in full immediately. "When a bank’s assets get transferred to another institution following a bankruptcy or forced closure by state regulators, mortgages are turned over to another bank or investor. In such cases, the new lender can “call in” mortgage notes they find to be risky, making mortgage payments due immediately.

@kendigjl Жыл бұрын

Gambling is one thing. Gambling with the idea that your information is twice as good as the markets information is another. Because that's the only way doubling your risk makes sense.

@jasonkennedyhernandez4652 2 жыл бұрын

this is relevant today.

@icesummer1725 4 жыл бұрын

Is there a way to automate this and just transfer the money to the margin account from an account i have with broker when my maint margin % falls 35%?

@ltq8842 2 жыл бұрын

i was looking for this to understand the movie.

@purtol9686 Жыл бұрын

Thx

@khwiserosportsacademy6826 3 жыл бұрын

great

@qualitytalks2801 2 жыл бұрын

Just beautiful ❤️

@5ervanttechintel_github_io979 7 ай бұрын

I understand.

@mairajamil001 3 жыл бұрын

cool, now imma go watch margin call- you know, bcz of $gme stock n all

@briankelly1240 3 жыл бұрын

Can you pay off the margin debt at any time or only when you sell?

@hammondcheesa-angwich6009 4 жыл бұрын

Does margin mean the loan amount or the equity in your account?

@barnstormeerr 4 жыл бұрын

But if I have not involved in any margin and traded with $5000 then even if I make loss of 25% I would still be left with $3750 which is better than $2500 as shown in the video if I've opted margin investment, but also if I'll make a gain on 5000 then my gain would only be 1250 but not $2500

@1s1o1n1g1 10 ай бұрын

I am a new to the trading world. I have a question. I have an account deficit balance but I have never used or turn on the margin investing why I have account deficit? I asked some of the agent, but they asked too much personal information. Can it be trust? What question can they as to identify me?

@adamgibson7181 Жыл бұрын

What is the difference between a margin trade and using leverage?

@hanxue3763 3 жыл бұрын

To use your example, when the market drops 25%, Margin call is triggered as 33.33%< 35% maintenance Margin. How much cash are you required to deposit to satisfied the margin call? 5K ?or the difference between 33.33% to 35% which will bump up the % to 35% ? thank you ! great contents by the way

@hanxue3763 3 жыл бұрын

I rewatched it again, and noticed that you have addressed the question I asked above in the video.

@howellchampagne3856 Ай бұрын

How is the interest on the margin loan paid and how often?

@ragnarox16 2 жыл бұрын

Where is interest calculated and how often is it typically compiled

@josephg8818 2 жыл бұрын

do you get margin maintance back , say you have to add $ to cover maintenance so you add 100$ say the stock goes back up , do you get that 100 back in your account or you just owe less margin?

@appu537 5 жыл бұрын

So when we recieve the margin call, does that mean that when we put extra money into the account, will it just stay there for the broker to cover up his investment, or wit will actually be invested in shares?

@3kkant 3 жыл бұрын

It will stay there for the broker as far as I know

@gridcoregilry666 2 жыл бұрын

so well done, but I feel screamed at xD

@anaswahid8520 3 жыл бұрын

Sir why brokers give margin? What is the benefit of the margin that broker gives to their clients.?

@aswler 4 жыл бұрын

12,250 or rather 12,500?

@LearntoInvest 4 жыл бұрын

Yes, that was a mistake. The rest of the math is correct though 🙂

@Philson 3 жыл бұрын

Hi I'm Jimmy.

@giacomopenengo7508 4 жыл бұрын

So a lower % maintenance margin is better?

@grains6002 3 жыл бұрын

Amc to the moon

@frankt9156 Жыл бұрын

Does margin call happen at the end of day, after the market close?

@nena8687 11 ай бұрын

I have a suggestion. I'm in my masters program. Reading the book. Financial management for nurse manager ch3pg 58. I'm not understanding when hospitals work on margin. And predictor of closing and cas to debt ration. 😢 Can you make a video explaining that 🤔. Please. You're the best.. for all the nurses who are taking MBA classes.. 🎉 thank you for your time