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Margin Mechanics and Margin Calls
Two separate requirements govern a margined position: what is needed to open it and what is needed to keep it. A call arrives when equity falls below the second.
Intermediate4 min read
Accounts
Order Routing and Payment for Order Flow
An order does not go to an exchange because you sent it there. It goes wherever your broker routes it, and the routing decision has a disclosed economics behind it.
Intermediate4 min read
Accounts
How Corporate Actions Reach Your Account
Splits, spin-offs, mergers and dividends are processed by the broker on dates set by the company. What arrives, and when, follows rules that are not always obvious.
Intermediate4 min read
Accounts
Securities Lending
Shares held in a margin account can be lent to short sellers. The holder usually keeps the economics and loses some rights while the loan is outstanding.
Intermediate4 min read