Cash trading

Buying shares with the money you actually hold

In detail

Cash trading means buying within the balance in your account and simply holding what you bought. Unlike margin trading it borrows neither money nor shares, so there are no extra collateral calls and no interest. Losses stop at the amount you put in, and dividends and voting rights come with the shares. This is where a first trade normally starts.

Example

With $100,000 in the account you can buy 100 shares of a $1,000 stock outright.

Related terms

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.