Investing Dictionary
Risk

What is Margin?

Borrowing money from your broker to buy more stocks

Full Explanation

Trading on margin means you use your broker's money to buy more than you could with your own cash. Amplifies gains AND losses. Very risky.

Pro Tip

Never trade on margin as a beginner. You can lose more than you invest.

Related Risk Terms

Leverage

Using borrowed money or financial instruments to amplify your investment

Position Sizing

Deciding how much of your money to put in one stock

Risk/Reward Ratio

Comparing how much you could lose vs. how much you could gain

Short Interest

How many people are betting a stock will fall

View all Risk terms →

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