What was the problem with buying a stock on margin

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Jessica Mercer

13 June, 15:20

What was the problem with buying a stock on margin

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Moses Logan · Answer 1

Margin trading confers a higher profit potential than traditional trading but also greater risks. Purchasing stocks on margin amplifies the effects of losses. Additionally, the broker may issue a margin call, which requires you to liquidate your position in a stock or front more capital to keep your investment.

Sharon Long · Answer 2

Purchasing stocks on margin amplifies the effects of losses. Additionally, the broker may issue a margin call, which requires you to liquidate your position in a stock or front more capital to keep your investment