What is a margin loan?

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4th Dec 2009 by JonB

A marine loan is usually given to stock traders so that they may buy or sell more stock than they have the money for. This way they can gain or lose more off of smaller fluctuations in price. Margin, or leverage is a double-edged sword. If you can do well without it, then you will do even better with margin. However margin compounds losses just as quickly as it compounds gains and y ou should be sure you know exactly what you are doing before getting a margin loan.

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27th Nov 2009 In Finance 1 Answers | 581 Views
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