![]() The upside would be the potential for higher gains… Trading with a margin account can give you access to more trading capital, and that allows you to buy larger share sizes. Basically, the brokerage loans traders money, charges them interest, and then uses their accounts equity as collateral. Your selection can make a big difference in how you trade.Ī margin account allows traders to trade stocks with borrowed funds. When you first open a brokerage account, you’ll be able to choose between two account types: cash or margin. ![]() One way is by trading from what’s called a margin account. And some choose to take on more, hoping to make even larger profits in a shorter time frame. ![]() There’s no such thing as risk-free trading. ![]() But there’s a downside to risk - the possibility of losing. Let’s face it, risk is one of the most important aspects of the stock market. You might be tempted to trade with a margin account … But you gotta know that if things don’t go well, you can face the dreaded margin call. ![]()
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