margin trading

margin trading
Buying securities, in part, with borrowed money. Bloomberg Financial Dictionary

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   An investor pays a certain amount of cash to fund a transaction and borrows the remainder from a broker at a rate of interest. Margin trading provides gearing to investors since their small amount of funds goes a lot further when combined with additional borrowed funds. But added gearing means increased risk if the market moves against the investor.

Financial and business terms. 2012.

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