USA HISTORY

Detailed explanation-1: -Buying on margin is borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account.

Detailed explanation-2: -Buying on margin involves getting a loan from your brokerage and using the money from the loan to invest in more securities than you can buy with your available cash. Through margin buying, investors can amplify their returns-but only if their investments outperform the cost of the loan itself.

Detailed explanation-3: -Margin trading is when investors borrow cash against their securities in order to make speculative trades. In a bullish market, margin trades can offer traders much higher returns than they could get by simply investing their available assets. However, margin trading can also lead to much higher losses.

Detailed explanation-4: -Buying stocks on margin means investors are borrowing money from their broker to purchase stock shares. The margin loan increases buying power, allowing investors to buy more shares than they would have been able to, using only their cash balance.