margin trading
Investing with loans
Margin trading is buying securities with money borrowed from a broker, using existing holdings as collateral.
It amplifies both gains and losses—if prices move against you, you may face a margin call requiring additional funds or forced liquidation.
She doubled her position through margin trading, then lost everything when the stock dropped.
- derivativesThings derived from another
- optionsAvailable courses of action
- leverageBorrowed capital for amplified returns
- collateralSecurity for debt
- stocksOwnership stakes or inventory
borrowed money · short selling · hedging · liquidity · arbitrage · futures · securities · buying power · bonds · interest rates · capital allocation · opportunity cost · speculation · high risk · market volatility · bull market · bear market · diversification
- financebank, CFO, banks, controller, finance
- risksrisk, gamble, bet, wager, chance it
- investingstocks, stock, bonds, investing, investor
- stock marketstock, shares, stocks, stock market, trader
- Stock MarketsNYSE, NASDAQ, Tokyo Stock Exchange, stock exchange, Wall Street
- Online Tradingbuy order, sell order, market order, limit order, broker
margin tradingcapital preservation
Safeguarding original investment value
savings accounts · money market funds · certificates of deposit