A margin loan allows investors to borrow money from a brokerage using existing securities as collateral. This financial tool enables buying more stocks or bonds without selling current holdings, amplifying potential returns. High-net-worth individuals and active traders often use margin loans for liquidity, leveraging their portfolios. However, risks include potential margin calls if asset values drop.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends