They borrow money from their broker in order to make a larger
currency purchase
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Answers is the place to go to get the answers you need and to ask the questions you want
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When currency traders buy on margin they borrow money from their
broker. They do this in order to make a larger currency
purchase.
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borrowing money allows traders to make large purchases without a
large amount of money up front.
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Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of the investment and the loan amount.
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Used to invest in equities with the leverage of borrowed funds, a margin account is intended to increase the possible return on investment.
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Thinking about borrowing money to buy stocks? Here’s what you should know about buying on margin.
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Learn the difference between leverage and margin in forex trading, as well as other "margin" terms in forex trader's platforms.
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Buying on margin means borrowing money from your broker to purchase stock. It can be risky business if a trade turns sour.
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We are issuing this investor guidance to provide some basic facts to investors about the practice of purchasing securities on margin, and to alert investors to the risks involved with trading securities in a margin account.
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"Margin" is borrowing money from you broker to buy a stock and
using your investment as collateral. Learn how margin works and the risks
you may encounter.
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You are watching: Top 12+ Which Explains What Happens When Currency Traders Buy On Margin
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