buying on margin

简明释义

交押金买进

英英释义

例句

1.Investors should fully understand the risks involved with buying on margin before proceeding.

投资者在进行保证金买入之前应充分了解相关风险。

2.The brokerage firm offers low interest rates for clients who are buying on margin.

该经纪公司为进行保证金买入的客户提供低利率。

3.He lost a significant amount of money due to buying on margin during a market downturn.

由于在市场下跌期间进行保证金买入，他损失了大量资金。

4.Many investors are hesitant about buying on margin because it increases the risk of losses.

许多投资者对保证金买入持谨慎态度，因为这会增加亏损的风险。

5.She decided to start buying on margin to leverage her investment in tech stocks.

她决定开始保证金买入以利用对科技股的投资。

作文

In the world of finance and investing, one term that often comes up is buying on margin. This strategy allows investors to purchase more securities than they could with just their available cash. Essentially, it involves borrowing money from a broker to buy stocks or other financial instruments. While this can amplify potential gains, it also significantly increases the risk of losses.To understand buying on margin, it’s important to grasp the mechanics behind it. When an investor wants to buy stocks worth $10,000 but only has $5,000 in cash, they can borrow the remaining $5,000 from their brokerage. This is done by using the purchased stocks as collateral. The investor is then required to maintain a minimum balance in their margin account, which is typically set by the brokerage firm and regulated by financial authorities.One of the main advantages of buying on margin is the potential for higher returns. If the stock price rises, the investor can sell the shares at a profit that exceeds what they would have earned if they had only used their own cash. For example, if the stock price increases by 20%, the investor not only earns a return on their initial investment but also benefits from the borrowed funds, leading to even greater profits.However, this strategy is not without its risks. If the stock price falls instead of rising, the investor faces the possibility of losing more than their initial investment. This is because they still owe the broker the borrowed amount, regardless of the stock's performance. If the value of the stocks drops significantly, the brokerage may issue a margin call, requiring the investor to deposit additional funds or sell off some of their holdings to cover the losses. This scenario can lead to a quick spiral of debt and financial distress.Moreover, the costs associated with buying on margin can add up. Brokers charge interest on the borrowed funds, which can eat into profits. If an investor holds onto their margin position for an extended period, the interest payments can become substantial, further complicating the profitability of the investment.Due to these risks, it is crucial for investors to approach buying on margin with caution. It is often recommended that only experienced investors who fully understand the implications should engage in this practice. Additionally, having a solid risk management strategy in place can help mitigate potential losses. For instance, setting stop-loss orders can protect against significant downturns in stock prices.In conclusion, buying on margin can be a powerful tool for investors looking to increase their purchasing power and potentially enhance their returns. However, it is essential to recognize the inherent risks involved. Understanding how margin accounts work and maintaining a disciplined approach to investing can help individuals navigate the complexities of this strategy. As with any investment decision, thorough research and careful consideration are key to successful investing.

在金融和投资的世界中，一个常常出现的术语是买入保证金。这种策略允许投资者购买比他们可用现金更多的证券。基本上，它涉及从经纪人那里借钱来购买股票或其他金融工具。虽然这可以放大潜在收益，但也显著增加了损失的风险。要理解买入保证金，重要的是要掌握其背后的机制。当一个投资者想要购买价值10,000美元的股票，但只有5,000美元现金时，他们可以向经纪公司借取剩余的5,000美元。这是通过将所购买的股票作为抵押品来完成的。然后，投资者需要在他们的保证金账户中保持最低余额，这通常由经纪公司设定，并受到金融监管机构的监管。买入保证金的主要优势之一是潜在的高回报。如果股票价格上涨，投资者可以以超过他们仅使用现金所赚取的利润出售股票。例如，如果股票价格上涨20%，投资者不仅可以获得初始投资的回报，还能从借来的资金中受益，从而获得更大的利润。然而，这种策略并非没有风险。如果股票价格下跌而不是上涨，投资者面临着损失超过初始投资的可能性。这是因为无论股票的表现如何，他们仍然欠经纪人借款金额。如果股票价值大幅下跌，经纪公司可能会发出保证金追缴通知，要求投资者存入额外资金或出售部分持股以弥补损失。这种情况可能导致债务和财务困境的快速螺旋。此外，与买入保证金相关的成本可能会增加。经纪人对借款收取利息，这可能会侵蚀利润。如果投资者长时间持有保证金头寸，利息支付可能会变得相当可观，进一步复杂化投资的盈利能力。由于这些风险，投资者在进行买入保证金时必须谨慎。通常建议只有经验丰富、完全理解其含义的投资者才应参与此实践。此外，制定稳健的风险管理策略可以帮助减轻潜在损失。例如，设置止损订单可以保护投资者免受股票价格大幅下跌的影响。总之，买入保证金可以成为希望提高购买力和潜在收益的投资者的强大工具。然而，重要的是要认识到其中固有的风险。理解保证金账户的运作方式并保持严谨的投资方法可以帮助个人应对这一策略的复杂性。与任何投资决策一样，充分的研究和仔细的考虑是成功投资的关键。