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What Is Margin & Should You Invest on It?

By Jeremy Bowman – Updated Mar 19, 2025 at 2:42PM

Key Points

  • Margin trading involves using borrowed funds from a broker to buy stocks, potentially increasing gains and losses.
  • Interest on margin loans can be high, reducing net profit and increasing investment risk compared to traditional investing.
  • Margin calls require additional funds during market dips, potentially forcing sales of stocks at losses.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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