Glossary · Risk · Beginner-friendly

Margin trading

In plain English

Margin means borrowing money from a broker to buy more. Gains and losses get bigger — and you can be forced to sell if the account falls too far.

Everyday analogy: Buying more gear with a credit card — great when prices rise, painful when they fall and the bill comes due.

Click through real pages — learning sticks better with examples you can see.

Margin turns ordinary volatility into survival risk. Forced selling often hits when prices are worst.

A bit more detail (optional)

You put up collateral; the broker lends the rest. A 10% move in the stock is a larger percent move on your equity — both ways.

If the account equity drops below maintenance requirements, the broker can demand cash or sell positions — often at the worst time.

A leveraged long survives a −8% dip but fails a −18% gap. The broker liquidates; the rebound never helps that account.

A leveraged long survives mild dips, then a gap breaches maintenance. Liquidation locks in losses before any rebound.

Remember: Margin multiplies outcomes — including the ones you cannot emotionally or financially survive.