Margin trading can also increase losses. For example, if a stock drops 20%, the investment value falls by $2,000 to $8,000, resulting in a 40% loss of the investor's initial capital. In some cases ...

The concept of using debt to fund part of an investment is known as gearing or leverage, but the specific practice of using money provided by a broker is known as buying on margin. The collateral ...

Investors' debt level in margin accounts is at $899.2 billion based on the latest figures released for December by the industry self-regulatory organization, FINRA, on Friday.