Buying on margin is considered a high-risk strategy and is generally not recommended for beginners. Buying on Margin: How It Works and Key Risks - Wealthsimple
Buying on margin is the practice of from a brokerage to purchase securities, using the assets in your account as collateral . It allows you to buy more stock than you could with cash alone, effectively using leverage to amplify your potential returns—and your potential losses. ⚙️ How it Works what is buying on margin
: Since this is a loan, your broker charges interest on the borrowed amount. Rates often range from 5% to 12%+ and accrue daily. Buying on margin is considered a high-risk strategy
: The minimum amount of equity you must keep in your account at all times. This is often around 25% of the total market value of the securities. ⚙️ How it Works : Since this is