1) Margin Trading
Investing on margin in some ways can be compared to playing blackjack in a casino on borrowed money. If you win, you can double the money you brought in without a sweat. However, there is much more to it than placing that one bet at the table because one of your cards is an ace. You have to be very lucky or very foolish to put in all that money in just one go. You could end up losing all the money and still find yourself indebted.
Margin is a very high-risk investing strategy that can result in an enormous profit if properly done. If executed poorly, the investor could end up losing everything. There is nothing riskier than investing in margin without understanding what it is. Read on to know more about margin trading.