Review Topics
Practice Exams
You can't use your cell phone in the testing facility, but I can't use a cell phone EVER. Hooves. They're a real problem.

The Magnifying Effect of Margin

Dashboard > Chapter 10: Trading on Margin > The Magnifying Effect of Margin

The Magnifying Effect of Margin

A Basic Trade to Illustrate the Magnifying Effects of Margin:

"This is your brain. This is your brain on margin."

Here's how margin works and gives you an idea on the math behind it.

MARGIN STORY ONE: You buy 1,000 shares of DOW for $10 a share with no margin. You just pay cash.

A year later, you sell it for $20. Awesome. You doubled your money.

You have $20,000. Woot. Compound return: 100%. By the way, here's how you compute returns: (Ending amount – Beginning amount) ÷ Beginning amount × 100...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

Next: Short Margin Accounts  
  Prev: Introduction to Margin