By Matthew Makowski Margin trading can add a potent boost to an investor’s purchasing power. But it can also lead to financial ruin if not used properly. Now, some financial institutions can be stingy with how much and to whom margin is offered. But it remains a useful tool for an experienced investor or trader… once they know how to harness it.
Let’s start with the basics. Margin trading – also known as trading on margin – is essentially a line of credit offered by a brokerage. This loan (usually with interest) allows an investor to buy more stocks or securities than they would …read more
