How Does Margin Work in Trading?

By Brian M. Reiser Many investors have heard about trading on margin, but many also ask the question: how does margin work in trading? Is it a good strategy? Is it risky? Should traders use it? And these are all good questions.
By the end of this article, you should have a solid understanding of how margin works in trading, and you will also have a sense of whether or not trading on margin could be right for you.
It’s important to note up front that margin trading is a risky strategy. It can multiply your gains on a position, but it can also multiply your …read more



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