margin finance definition
margin finance means that the Financial Broker finances a part of the securities in the Margin Finance Account by guaranteeing the securities in such account. Dear Investor, Let us assume that you want to purchase shares amounting to 50 JD, and the value of the said shares increased to 75 JD, if you had purchased such shares through your ordinary account and paid its amount in full, then you would have made a 50% profit. But if you had purchased such shares from the Margin Finance Account, then you would have paid 25 JD and your broker would have paid 25 JD, which would consequently mean that you made a 100% profit. However, if the share price is decreased to 25 JD, and in the case that you purchased such ordinary share and paid its amount in full, your loss amount to 50%. But if you purchased such share through the Margin Finance Account, then your loss will be 100%, in addition to interests and commissions value, if any; i.e. your loss when trading on Margin will be greater.
margin finance means any financing arranged by applicants from or through the intermediaries through which they have applied for the purpose of funding their applications;