Should I buy stocks on Margin?

Margin
Margin is the act of buying stocks using borrowed money through your broker. The amount of margin you can use is decided upon by your broker and the size of your account. Basically, the broker will lend you money based upon your accounts worth. Very similar to borrowing money for a mortgage on a house. In that scenario the bank looks at your value and what you can put down, then they loan you the rest for the house. With margin, you are attempting to use borrowed money to make a much larger gain. As you can easily see, borrowing money to invest in the stock market can be quite risky. If you buy in a bull market and use all the funds leveraged to you, you will make much more money than you would have without using margin. The same goes for a bear market and taking a loss. You can then lose much more money than you expected. Margin is a dangerous game. Read More about trading on margin.