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Finance · Investment & Markets

Margin Trading

Noun
US US /ˈmɑːdʒɪn ˈtreɪdɪŋ/ GB UK /ˈmɑːdʒɪn ˈtreɪdɪŋ/
Finance Investment & Markets intermediate

Definition

Borrowing funds from a broker to trade larger positions than capital allows.

Visual Reference

Margin Trading illustration

Detailed Explanation

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Example

Investors use Margin Trading to evaluate securities and make portfolio decisions.

In Practice

Also known as: Leveraged Trading. Closely related to Leverage, Short Selling.

Video Explanation

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Case Study

Margin Trading - key concept in Investment & Markets.

Word Usage

Speculative trading; Futures; Options

Finance Investment & Markets

Use Case

Applied in Investment & Markets contexts: Speculative trading; Futures

Also Known As

investment-markets

Synonyms

Leveraged Trading

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