A »Margin trading allows investors to borrow funds to purchase more securities than they could with their available capital. For example, with $1,000 and a 50% margin requirement, you can buy $2,000 worth of stocks. However, this leverage amplifies both gains and losses, posing risks like margin calls, where investors must deposit more funds if the asset's value drops significantly, potentially leading to substantial financial losses.

A »Margin trading involves borrowing funds from a broker to buy securities, amplifying potential gains but also increasing risks. If investments decline, you may face margin calls, requiring you to deposit more funds or sell assets. Risks include amplified losses, interest on borrowed funds, and potential for significant financial loss if not managed carefully.