Template:Margin loan: Difference between revisions

Template:Margin loan (view source)

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Revision as of 15:28, 7 November 2019 (view source) Amwelladmin (talk \| contribs) (Created page with "A '''margin lending transaction''' is one where one party lends money to another so it can buy or sell securities. Usually...")		Latest revision as of 15:32, 7 November 2019 (view source) Amwelladmin (talk \| contribs) No edit summary
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	A '''[[Margin lending transaction - SFTR Provision\|margin lending transaction]]''' is one where one party lends money to another so it can buy or sell [[securities]]. Usually the [[borrower]] lets the [[lender]] hold the securities ~~(as custodian)~~ as collateral for the [[margin loan]]. The borrower may allow the lender to use those securities in the market to ~~defray~~ its funding costs of making the margin loan.		A '''[[Margin lending transaction - SFTR Provision\|margin lending transaction]]''' is one where one party lends money to another so it can buy or sell [[securities]]. The lender will lend up to a certain value of the securities. If the [[securities]] fall in value, the [[lender]] may ask the [[borrower]] to post [[margin]] to cover the value of the [[margin loan]].

			Usually the [[borrower]] lets the [[lender]] hold the [[securities]] as collateral for the [[margin loan]]. The [[borrower]] may also allow the [[lender]] to [[Rehypothecate\|use]] those [[securities]] in the market to offset its funding costs of making the [[margin loan]].