Tag: borrowing capital

Introduction:Margin trading is a practice used by investors to maximize their potential returns by borrowing funds to invest in stocks. While it can offer significant profit opportunities, margin trading also carries substantial risks. In this article, we will dive into the pros and cons of margin trading in stocks to help you assess the risk-reward balance. Increased Buying Power:One of the main advantages of margin trading is the ability to amplify buying power. By borrowing funds from a brokerage firm, investors can purchase more shares than they could with their...