Pros:
- Buying stocks on margin allows investors to purchase stocks with a smaller amount of money.
- Margin trading is a good way for investors to make more money on their investments because it increases the potential return.
- Margin trading can be used as a form of leverage when investing in the stock market.
What are the pros and cons of buying stocks on margin?
Cons:
- Margin trading can lead to an investor making less money than they should because they are borrowing money from the broker, which increases the risk of loss.
- Margin trading can lead to an investor having higher interest rates because they are borrowing money from the broker, which increases debt and interest payments.
- Margin trading can lead to an investor having higher interest rates because they are borrowing money from the broker, which increases debt and interest payments.