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what is margin loan

What Is A Margin Loan?

A margin loan is a type of gearing that allows you to borrow a particular sum of money you can use for investments. Typically, you would use your existing cash, as well as shares and other managed funds in the form of security. Plus, the sum you are permitted to borrow is imminently influenced by your portfolio, and the securities you can offer. Margin loans are designed especially for investors who continually monitor their investments. Plus, it allows borrowers to benefit from flexibility. However, it can either grow your earning or magnify your loss. For this reason, it’s essential that […]