{"id":736,"date":"2010-10-06T09:32:28","date_gmt":"2010-10-06T13:32:28","guid":{"rendered":"http:\/\/thestockmarketwatch.com\/learn-stock-market\/?p=736"},"modified":"2016-05-02T12:00:47","modified_gmt":"2016-05-02T16:00:47","slug":"margin-trading-conclusion","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-conclusion\/","title":{"rendered":"6) Margin Trading: Conclusion"},"content":{"rendered":"<p><strong>Margin trading<\/strong> can be compared to a gamble. It&#8217;s either you make lots of money, or lose all of it. But, usually the odds are not in your favor.<\/p>\n<p>These are the highlights of this tutorial:<\/p>\n<ul>\n<li>Margin trading, or buying on margin, involves borrowing money from a broker to increase your buying power in purchasing stock.<\/li>\n<li>The initial investment required to open a margin account is at least $2,000 (minimum margin).<\/li>\n<li>You can borrow up to 50% of the purchase price of a stock (initial margin).<\/li>\n<li>A minimum amount of equity in your margin account is required, and this can range from 25% &#8211; 40% (maintenance margin).<\/li>\n<li>Marginable securities act are made as collateral for the loan. Interests have to be paid, like any other loan, but it can be charged to your account.<\/li>\n<li>Not all stocks can be bought on margin.<\/li>\n<li>A margin call happens when the equity in your account falls below the maintenance margin.<\/li>\n<li>When a margin call happens, you have to add more funds to your account or sell stocks to pay off the debt.<\/li>\n<li>Your securities may be sold by the brokerage without first consulting you.<\/li>\n<li>Margin is leverage.<\/li>\n<li>If executed properly, you can profit a lot from margin trading.<\/li>\n<li>Buying on margin is extremely risky. You can lose more than your original investment.<\/li>\n<li>Margin trading is not for the beginners.<\/li>\n<\/ul>\n<p>This tutorial is meant only as an educational guide and not as an advice for margin trading.<\/p>\n<ul class=\"lcp_catlist\" id=\"lcp_instance_0\"><li class=\"current\"><a href=\"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-conclusion\/\">6) Margin Trading: Conclusion<\/a><\/li><li><a href=\"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-the-dreaded-margin-call\/\">3) Margin Trading: The Dreaded Margin Call<\/a><\/li><li><a href=\"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-the-risks\/\">5) Margin Trading: The Risks<\/a><\/li><li><a href=\"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-the-advantages\/\">4) Margin Trading: The Advantages<\/a><\/li><li><a href=\"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-introduction\/\">1) Margin Trading<\/a><\/li><li><a href=\"https:\/\/www2.stockmarketwatch.com\/learn\/margin-trading-what-is-buying-on-margin\/\">2) Margin Trading: What Is Buying On Margin?<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Margin trading can be compared to a gamble. It&#8217;s either you make lots of money, or lose all of it. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[30],"tags":[],"class_list":["post-736","post","type-post","status-publish","format-standard","hentry","category-margin-trading"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts\/736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/comments?post=736"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts\/736\/revisions"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/media?parent=736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/categories?post=736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/tags?post=736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}