3 min read
14 июля 2024
Trade Team
The Role of Margin in Stock Trading
In the realm of stock trading, margin trading has emerged as a powerful tool that allows traders to access greater capital than their own, potentially amplifying their profits or losses. By borrowing funds from their brokers, traders can purchase more shares than they could afford with their own cash, potentially magnifying their returns if the stock price moves in their favor. However, margin trading also carries inherent risks, as losses can be magnified if the stock price moves against the trader's position. This comprehensive guide delves into the intricacies of margin trading, empowering traders to make informed decisions about whether this strategy aligns with their risk tolerance and investment goals.