Business Administration - Financial Planning RFC125 Lecture Notes - Lecture 10: Montreal Exchange, Know Your Customer
9 Nov 2016
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Open an account: cash or margin. Settlement date: t-bills: same day, a(cid:374)y (cid:271)o(cid:374)ds less tha(cid:374) (cid:1007) years" (cid:373)aturity: (cid:1006) days, stock, bonds, mutual funds (everything else): t + 3. Anytime there are rules in csc are only for exam writing purposes. Margin: borrow money from brokerage firm, 1. Brokerage loan amount (simple loan amount: long position. Stock and over you can borrow up to 50% of the whole transactions. Whole transaction is ; you can borrow . Securities eligible for reduced margin (option eligible) Options traded in montreal exchange: peters rule for margin account never borrow up to. 1,000 shares of ry @ = ,000. At the end of the day it dropped to /share. Margin report next day, stating that you are ,500 difference (,000 - ,500: you are under margin, statistics. Margin call: give/transfer them the money, if not, cover the margin = sell out = sell the stock to cover the margin.
