The Stock Watcher
Sign InSubscribe
Stocks

What is Buying on Margin?

 
Share this article

Learn all about buying on margin and how it works.

Description: A chart depicting the potential returns and risks associated with buying on margin.

Buying on margin is a popular strategy used by investors to increase their purchasing power and leverage their investments. It involves borrowing money from a broker in order to buy securities, sell short, or use derivatives. While it can result in greater returns, it comes with a number of risks and it is important to understand the implications before taking the plunge. This article provides an overview of buying on margin, its advantages and disadvantages, the related regulations, and other important information.

Labels:
buying on marginleveragesecuritiesderivativesinvestingreturnsrisksregulationsNASDAQ:AAPL
Share this article