What is Margin Loan Availability? Margin loan availability refers to the funds currently available in a margin account that can be used to purchase additional securities. An investor can also withdraw the funds for personal use. A margin account allows investors to purchase more securities than they would’ve purchased using their actual deposits. When investors...
What is the Margin of Safety? The margin of safety is an investment principle where the investor buys stocks when the market price is below their actual value. It is evaluated as the change between the price of a financial instrument and its basic value. The margin of safety acts as a built-in cushion that allows...
What is a Margin Account? A margin account refers to a type of brokerage account that investors use where they can borrow funds to purchase financial products. Investors are required to pay a monthly interest rate on the amount borrowed from the brokerage. A margin-approved account increases the customer’s power to purchase more securities, such...
What is Spider (SPDR)? Spider (SPDR), also pronounced and written as Spyder, refers to the Standard and Poor’s Depositary Receipts. It is also the trademark of Standard and Poor’s Financial Services LLC, a subsidiary of Standard & Poor’s (S&P) global owned by State Street Global Advisor (SSGA). SPDR belongs to a family of exchange-traded funds...
What is Spinning Top Candlestick? Spinning top candlestick is a pattern with a short body between an upper and a lower long wick. The spinning top illustrates a scenario where neither the seller nor the buyer has gained. It results in equal opening and closing price units. The formation of a spinning top candlestick helps...