Tag: LeverageEffect

Leverage in the stock market allows investors to increase their purchasing power through the use of borrowed capital. One common method to achieve leverage is through margin trading, a practice that can amplify returns but also potential losses. In this guide, we'll explore the nuts and bolts of margin trading to help you navigate this advanced investing tool. What is Margin Trading? Margin trading involves borrowing money from a broker to invest in stocks, allowing you to buy more shares than you could with just your available funds. The initial cash...