Sunday, April 5, 2009

What is Margin trading

Margin trading is trading with borrowed funds/securities. It is almost like buying securities on credit.Margin trading can lead to greater returns, but can also be very risky. While it lets you actively seize market opportunities it also subjects you to a number of unique risks such as interest payments charged for the borrowed money.

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Jesse Livermore Said

"The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, or for the get-rich-quick adventurer. They will die poor."