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Buying on margin: Easy explanation. [Video]

In this video, you will learn about margin in buying assets. #margin #buyingonmargin #wallstreetmojo #leverage #financialmarkets Chapters: 00:00 – Introduction 00:26 – What does buying on margin mean? 01:35 – Characteristics of buying an asset on margin 02:48 – Types of buying on margin 04:06 – Advantages 05:24 – Disadvantages 06:00 – Conclusion What does buying on margin mean? Buying on margin is an investor buying a house, shares in the stock market, or any other financial asset by paying just a part of the total amount, which is a down payment, and banks or brokers finance the remaining. (Explained in detail in the video) Characteristics of buying an asset on margin If an investor buys any financial asset on leverage, they pay only a fraction of the total value of the asset, and the remaining is loaned to them by the broker. At the end of each trading day, …

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