Margin A Risk | Why Is Buying On

The Double-Edged Sword: Why Buying on Margin is a High-Risk Strategy

: A decline of 50% or more in a half-funded position can result in a loss of 100% or more of your initial capital. 2. You Can Lose More Than You Invested why is buying on margin a risk

: If you buy $10,000 of stock using $5,000 of your own cash and $5,000 in margin, a 25% drop in the stock price ($2,500 loss) actually results in a 50% loss of your initial $5,000 investment. The Double-Edged Sword: Why Buying on Margin is