May 9, 2024

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Margin in investing is the use of borrowed money to purchase securities. This practice can amplify returns but also potential losses. A margin account lets investors borrow money from a broker to buy securities, with the account itself serving as collateral for the loan. The amount of equity contributed by the investor is known as the “margin requirement” and is necessary to maintain in order to keep the position open. Margin trading can significantly increase investment risks.

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About the author 

Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.

Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.

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