USA HISTORY

Detailed explanation-1: -Margin trading, refers to borrowing money from your broker and using that money to invest in securities. Put simply, you are taking a loan, buying stocks with the borrowed funds, and then repaying the outstanding amount with applicable interest at a later date.

Detailed explanation-2: -A margin loan allows you to borrow against the value of the securities you own in your brokerage account. Whether you have stocks or bonds in your portfolio, such investments act as collateral to secure the loan. Each brokerage firm has its own terms on margin loans and what securities they consider marginable.

Detailed explanation-3: -Leverage is an investment strategy of using borrowed money-specifically, the use of various financial instruments or borrowed capital-to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.

Detailed explanation-4: -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.