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...
Category: Margin Trading
2) Margin Trading: What Is Buying On Margin?
Margin Trading is investing in stocks but this time it involves borrowing money from a broker to have more buying power. It allows you to buy more stock than what your own investment capital...
3) Margin Trading: The Dreaded Margin Call
The focus of this section of the tutorial is the maintenance margin and the dreaded margin call. A maintenance margin is the minimum balance you must maintain in your account. A margin call is...
4) Margin Trading: The Advantages
It is normal for companies to borrow money to finance projects. Similarly, investors can borrow money to boost their buying power. It is like doubling the funds in an account. Margin can dramatically increase...
5) Margin Trading: The Risks
In the same way that leverage can increase profit, it can also increase losses just as much. Margin trading involves a lot of risk. Not only will you be “gambling” with your own money,...
6) Margin Trading: Conclusion
Margin trading can be compared to a gamble. It’s either you make lots of money, or lose all of it. But, usually the odds are not in your favor. These are the highlights of...