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Episode 9: Cash and Margin Accounts
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How Canadian Markets Work
Episode 9: Cash and Margin Accounts
Hosts: John and Jane Runtime: 14 Minutes
Episode Summary In this episode, John and Jane discuss the mechanics of borrowing to invest. While a cash account is straightforward—you pay for what you own—a margin account introduces leverage, a tool that amplifies both your potential gains and your potential losses. Using a step-by-step numerical example, the hosts explain the "maintenance requirement" and the dreaded margin call…
The skinny
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