AAII Survey: Vast Majority of Readers Don’t Trade on Margin, Citing Risks & Unfamiliarity

Borrowing money through a margin account to purchase securities can be a profitable and wise investment strategy. But debt creates financial leverage: The money in a full payment purchase can instead be used as a type of down payment to buy a much larger block of stock. This means that gains—and losses—in a margin account…

 

Margin: A Portfolio Lever for Buying and Selling Stock

Borrowing money through a margin account to purchase securities can be a profitable and wise investment strategy. But debt creates financial leverage: The money in a full payment purchase can instead be used as a type of down payment to buy a much larger block of stock. This means that gains—and losses—in a margin account…