3 years ago

What was the problem with buying a stock on margin

2 answers:

6 0

Answer:

Purchasing stocks on margin amplifies the effects of losses. Additionally, the broker may issue a margin call, which requires you to liquidate your position in a stock or front more capital to keep your investment

Explanation:

goldfiish [28.3K]3 years ago

6 0

Answer:

Margin trading confers a higher profit potential than traditional trading but also greater risks. Purchasing stocks on margin amplifies the effects of losses. Additionally, the broker may issue a margin call, which requires you to liquidate your position in a stock or front more capital to keep your investment.

Explanation:

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