Lets have a brief outlook on its advantages and disadvantages of margin trading.To say about its benefits it help trader in getting more profit but amount to be invested initially is more compared to other type of trading. Another one thing to be noted is you can invest the amount not fully i.e it is not that your loan should be paid off in full amount. You can stay in till you are able to pay.as margin trading never demands you to pay the full amount.The more the amount you invest the more profit you get but before investing you must sure of the market status so that you can invest outrageously without any fear.Be cautious to invest in bull market as this is a good chance to earn more profit and this can be predicted when the country is economically good with more people being employed and no scarcity of food or poverty does not persist in the country.The right time to invest in margin trading is bull market were country flourishes.
Coming to its disadvantages margin trading allow one to use its security he own as lent were the main risk rest.If the condition of the market is good there is nothing to worry about it. but in case the market is of bear type the there is no cance of getting profit you may even pay for it or else you have to sell the share you have. So the time for investing in margin trading matters the most. If it is in favor of you i.e bull market you can get the best output and walk out with pride. If that is not the case you may have a reverse effect. Another thing to be keep in mind is that many experts recommend only technically sounded person to access in to margin trading. So be aware of the advantages and disadvantages of margin trading while stepping in it as it would guide you in making a right choice.
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