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Personal Finance

What is margin trading?

Quick Answer

Margin trading borrows from your broker to buy more stock than your cash supports. It magnifies gains and losses, charges interest (~10–12% today), and can trigger forced liquidation if equity drops too low.

Margin trading mechanics: leverage, interest, and margin call.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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