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Q: what is the "credit balance"?

Category: glossary , Asked by: Simeon W. From United Kingdom

A: In a margin account, the amount of funds deposited in the customer's account following the successful execution of a short sale order. The credit balance amount includes both the proceeds of the short sale itself and the specified margin amount the customer is required to deposit under Regulation T. In the case of a short sale, an investor essentially borrows equity shares from his or her brokerage and then sells the shares on the open market, hoping to buy them back off the open market for a lower price at a later date and then return them to the brokerage, pocketing the excess cash left over. When the shares are first short sold, the investor receives the cash amount of the sale in his or her margin account. This amount, plus the specified margin amount which must be deposited by the investor under Reg T, comprises the credit balance. It must be maintained in the investor's margin account as a form of assurance that the shares can be repurchased from the market and returned to the brokerage house. Visit Easy Forex

    please tell me what the "correspondent bank" is

    Category: glossary by Z. Lee from Exeter, United Kingdom

    "correspondent bank " is The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e.g. To facilitate the transfer of funds. In the US this often occurs domestically due to inter state banking restrictions.

    Which foreign exchange trading system offers the most educational educational courses for beginners, in your opinion?

    Category: platform by F. C. From Canada

    If you're interested in foreign exchange trading system that offers helpful how to trade manuals, you must totally try "AVA FX". They offer some fx schools for first time users, with easy to handle instructions and menues. You can certainly educate yourself looking into them.

    do you know what the "logarithmic price scale" is?

    Category: glossary by P. W. From France

    a "logarithmic price scale " is A type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs. The distance between the numbers on the scale decreases as the price of the underlying asset increases. This is the case because a $1 increase in price becomes less influential as the price heads higher since it now corresponds to less of a percentage change than it did when the price of the asset was at a lower level. Also referred to as a "log scale". Logarithmic price scales are generally accepted as the default setting for most charting services, and they're used by the majority of technical traders. Common percent changes are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price. Contrast this to "linear price scale".

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