Margin trading, aka buying on margin, is the practice of borrowing money from your stock broker to buy stocks, bonds, ETFs, or other market securities.
But keep in mind that margin trading amplifies losses just as it does for profits.
Advantages of margin tradingWhile it may seem that margin trading means bigger profits, that's not technically true.
Dangers of margin tradingUsing leverage to increase investment size, as margin trading does, is a two-edged sword.
But provided that you fully understand the risks and costs, margin trading could increase your profits and return on your investments.
Persons:
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Organizations:
Financial Industry Regulatory Authority, Mutual, Green Bay Packers