MARGIN

Margin trading is when you pay only a certain percentage, or margin of your investment cost, while borrowing the rest of the money you need from your broker.

Margin trading allows you to profit from the price fluctuations of assets that otherwise you wouldn’t be able to afford. Note that trading on margin can improve gains, but increases the risk and size of any potential losses.

What does trading on margin mean? In this guide we’ll walk you through what trading on margin is, techniques and principles such as leverage and margin call, as well as benefits and risks associated with margin trading.