86. A Word On Margin Trading

On today’s episode, I want to provide some guidance for margin trading. When a trader buys a stock on margin, it means that he/she is buying a security with borrowed money from their brokerage firm. In essence, buying on margin gives the trader leverage to buy more shares of a security than one normally could without access to margin. Put simply, the trader is borrowing money from his brokerage firm in order to purchase a stock.

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