Should You Invest On Margin? (Business tips)
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\\nMargin is the money borrowed from a brokerage firm to purchase an investment
\\nThe margin, when used, comes with interest
\\nThat means that you have to pay back more than the principal borrowed.
\\nThis magnifies losses because the debt to be paid is collateral plus the interest
\\nMargin Call: A demand from your brokerage for you to add money to your account or close out positions to bring your account back to the required level if you owe money.
\\nMargin is typically used for short-term investments.
\\nWhy I don\\u2019t use margin
\\nHighly speculative. There\\u2019s more than enough money to be made without such a risk.
\\nUsing margin usually on hopes for large profit, though there are professionals who speculate with a strategy on margins
\\nI\\u2019m not averse to risk, but I\\u2019d rather risk on my own line than someone else\\u2019s
\\nMajor Key:
\\nIf you can\\u2019t make money with what you have, then you sure as h*ll can\\u2019t make money with more money
\\n