marginaalijärjestelmään

Marginaalijärjestelmään refers to a financial concept, often encountered in the context of securities trading and financial markets. It describes a system or method where an investor can borrow funds from a broker to purchase securities. The purchased securities themselves serve as collateral for the loan. This allows investors to leverage their capital, potentially amplifying both gains and losses. The term "marginaali" directly translates to "margin" in English, highlighting the core principle of using a margin account.

In a marginaalijärjestelmään, the investor must maintain a certain level of equity in their account, known as the maintenance margin. If the value of the securities in the account falls below this level, the broker may issue a margin call, requiring the investor to deposit additional funds or sell securities to bring the account back to the required margin level. Failure to meet a margin call can result in the broker liquidating the investor's holdings to cover the loan. This system is a common practice in many stock exchanges and is regulated to mitigate systemic risk.