Guide on Margin Trading
Day traders buy and sell stocks multiple times during trading hours in the hope of turning profits based on a stock’s volatility on any given day. Though the invested capital is at risk, there is still a possibility to turn a profit. The profits earned depend on the capital invested and a higher investment gives high returns. In the stock market, traders borrow funds from their broker or their exchange, and often “play the market” with more than the capital in their account would allow. Margin trading allows those traders to open long and short positions and take advantage of…