When you’re buying stocks, you may have heard the term “margin rate.” What does that mean, and what should you know about it? A margin rate is the interest rate that a broker charges you to borrow money to purchase stocks. It’s expressed as a percentage of the purchase price, and it’s typically around 2-3%. […]
What Is Margin Rate In Stocks
What is Margin Rate in Stocks? A margin rate is the interest rate that a brokerage charges to its customers for the use of margin. Margin is a loan from the brokerage, and the margin rate is the interest that the brokerage charges on that loan. The margin rate is typically based on the prime […]
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What Does Margin Rate Mean In Stocks
When you buy stocks, you typically need to put up a certain percentage of the purchase price as collateral. This percentage is known as the margin rate. The margin rate is set by your broker and is based on the amount of risk the broker is taking with the stock. The higher the margin rate, […]
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