Buying stocks on margin explained – benefits and risks.



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Have you ever heard the term margin call? Find out why this causes big stock market crashes as investors are stopped out who were buying stocks on margin.

This is a great explanation of the stock market for beginners, along with the risks of margin trading and the benefits.

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28 thoughts on “Buying stocks on margin explained – benefits and risks.”

  1. F margin, im new to trading and after this tanking last week i had to liquidate stuff to cover margin, lost 1200 …such bs, 5 hours later stock was back up out of margin call, bs

  2. Do we actually own a stock on margin or ur just betting against the price…I looked everywhere but didn't find the answer. Please answer me if u can…thanx

  3. So say I burrow money, say for example $1000 margin

    And suddenly the stocks go down

    Let’s say the price of the stock having to be $5.00 when I buy in

    But the price drop to $4.85

    But, I wait for it to go back up and 2 days later it raise to $5.20.

    Do I lose, do I owe, or did I gain?

    Am I debt free the moment it returns to $5.00

    Or do I still lose money due to the drop that took place before it rose back or above my original buy in price?

  4. Hello ! thank you very much for the video !!
    Imagine that I have $ 1000 in my account and that my broker offers me a leverage of 4:1 so I have a buying power of $ 4000. My question is: if i buy 1000 shares at $ 3 = ($ 3000) and then sell them at the same price can i buy another 1000 shares at 3$ (the same day) , in fact I wonder if I can exceed the $ 4,000 of buying power that I have by buying shares several times in the same day.
    for instance : at 10:00am I buy 1000share at 3$ then at 10:01 i sell them. Then at 10:05am I buy 1000share at 3.1$ then at 10:06 i sell them and so on (the same day) I hope you understand me !

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