Timeline for Why would collateral be required to make a stock purchase?

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when toggle format	what		by	license	comment
Feb 11, 2021 at 0:05	history	edited	Phil Frost	CC BY-SA 4.0	deleted 1011 characters in body
Feb 10, 2021 at 20:29	comment	added	Phil Frost		@supercat you're right, I rewrote it to address buying stock specifically, and shifted the timeframe the peak and decline, which is the part that's more relevant to the question.
Feb 10, 2021 at 20:28	history	edited	Phil Frost	CC BY-SA 4.0	added 481 characters in body
Feb 10, 2021 at 19:24	comment	added	supercat		I would think, based upon your description, that RH would need more collateral to sell stocks on behalf of its customers than to buy them. If RH buys 10 shares of stock for its customers at $120/share from CS, its liability to CS would be limited to $1200 no matter what the stock price does. If CS buys shares from RH, however, RH would have open-ended liability until it actually supplies the shares.
Feb 10, 2021 at 15:55	history	edited	Phil Frost	CC BY-SA 4.0	added 118 characters in body
Feb 10, 2021 at 15:48	history	edited	Phil Frost	CC BY-SA 4.0	added 118 characters in body
Feb 10, 2021 at 15:41	history	answered	Phil Frost	CC BY-SA 4.0