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The Daily Capital
INVESTING 201 · Lesson 91

Margin: borrowing to invest, and why it bites

Daily Desk · Editorial5 min read
Margin lets you invest with borrowed money — multiplying your gains and your losses. It's how confident investors get wiped out.

Your broker will happily lend you money to buy more investments than your cash allows. It's called margin, and while it can amplify gains, it's one of the fastest ways for confident investors to blow up.

— Educational, not financial advice.