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Purchasing stock on margin entails borrowing money from a broker. Consider it a loan from your brokerage. Margin trading lets you purchase more shares than you would generally be able to. Buying on margin is somewhat more beneficial than buying with cash, but it’s crucial to remember that with more significant rewards comes more risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.