Margin Buying is also referred as buying Stocks on margin.  Interest on borrowing on margin is far lower than any credit card and about as cheap as a home mortgage interest rate. If used properly is can be a great tool.  You are allowed to borrow up to 50% of your stock’s current value. You can use that borrowing power to buy more stock or use the cash for something else. So with $1000 worth of cash you can buy $2000 worth of stock borrow $500 worth of cash.

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