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For questions about brokerage firms, opening a brokerage account, etc. Questions asking for specific service recommendations are off-topic.

35 votes

Why would collateral be required to make a stock purchase?

However, if I give a broker cash money and ask for a share of a stock in return, why would this need anyone to have collateral? The seller's broker needs to get paid by the buyer's broker. Because t …
David Schwartz's user avatar