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Margin is essentially borrowed money from a broker, bridging the gap between the total investment value and the loan amount. In margin trading, investors utilize borrowed funds, using the financial asset as collateral within a margin account that accepts current cash or securities as collateral. Despite the increased buying power, it's crucial to recognize that margin amplifies both gains and losses, potentially leading to the automatic liquidation of securities in the event of a loss. Watch the video to learn more!
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