I am familiar with a concept of 'time value of money'. In margin trading, If I take that extra amount which exchange offers, it doesn't specifies any time limit for return, which in my view is necessary. What if I hold for 6 months, am I not liable to anything ?
I cant understand this concept in margin trading. Can anyone please guide and help me understand ? Thanks.
HA? please reply to my post what do you know about margin trading? what is your definition of margin trading?
(note Iam asking nicely here you might get mad of the words I wrote and might misunderstood me)
Because your just asking about trading not the word margin because "margin trading" is borrowing like getting money for trading to use it earn/for to gain income AND RETURN it back from the owner you got and accessing margin is using an margin that is an account.
Just to me it short and helpfull I would suggest you to go toooo
SourceBe Positive this can really help you more I know I should write what I learn here but its much better reading the original.
I just want to tell you its dangerously risky so if will share all it here instead of typing it here I will let you know that dont (Because I am a person that is not into getting in a big RISK)
Search this on google which I read before and that it was the first results (link) it says this
"Margin trading is risky business, and therefore is governed by rules set by a number of entities the Federal Reserve Board, self-regulatory organizations (SROs) such as the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA), and brokerage firms.
SOURCE