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What does Margin/Maintenance Requirements percentage mean, when you want to buy stocks?


What does Margin/Maintenance Requirements percentage mean, when you want to buy stocks?

It depends on which market you are talking about. In the US, the margin is 50% so you only need 50% of the purchase price to buy the stock, the rest is loaned to you, on which you pay interest. You don't have to borrow money though you can trade only with the funds you have. The margin trading basically doubles your buying power.

Also, in the US, if you have at least $25K then your intraday buying power is 4x (i.e. the margin requirement is only 25%).

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