Beware of the pitfalls of margin trading
Published in Mint
Margin or leveraged trading comes with huge inherent risks as it involves taking on debt, which can magnify investors’ profits as well as losses
For the majority of retail investors, margin trading could be a short route to lose money because of the risks
Recently, a 20-year-old student in the US committed suicide allegedly after seeing a negative balance of $750,000 in his trading account, according to media reports. The student was trading options using an app popular among retail investors in the US.