>>Margin - Amount of profit added to cost price of each unit of a product
>>Margin call - Margin call term is used in two situations. First - Whenever a lender gives a secured loan and loan value is a fixed percentage of loan then whenever the value of security decrease below the decided ratio then lender given a margin call to borrower to bring loan to security ratio to decided level. Second , in stock exchanges traders trades in various securities by paying 20-30% of the value of securities. Whenever the value of security goes below that margin,broker gives margin call to trader to bring the margin to desired level.
>>Mark-to-market - As explained above while defining margin call, value of assets in case of securities is measured on daily basis. If the trader's asset value increased, increased value is transferred to his account. In case the value of assets decreased margin call is made to adjust the margin.
>>ROI - Rate on investment is return divided by value of investment
>>Redemption - Maturity date of a security or a bond
>>Recession - An economic situation of negative growth
>>Repo rate - Rate at which Central bank (RBI in case of India) lends money to commercial banks
>>Reverse repo rate - Rate at which commercial banks lends to central bank
No comments:
Post a Comment