Below are some of the recap of the definition of Margin Trading and its pros and cons:
- Margin means leverage
- Buying on margin is borrowing money from a broker to purchase gold
- Margin increases your buying power
- Like any loan, you have to pay interest on the amount you borrow
- If the equity in your account falls below the maintenance margin, the brokerage will issue a margin call
- The advantage of margin is that if you pick right, you win big
- The downside of margin is that you can lose more money than you originally invested |
發表於 2009-4-15 17:05
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