Enjoy these benefits of margin trading at Pinetree Securities:
The most significant advantage of using margin is the ability to leverage your investments and increase the returns when the price of your holdings is moving in your favor. A simple example explains the power of leverage:
Margin Trading Example: You have $20,000 worth of securities bought using $10,000 borrowed and $10,000 in cash. When the value of these securities rises by 25% to $25,000, and the amount you borrowed from your broker stays at $10,000, your equity becomes $15,000. That means your equity grew from $10,000 to $15,000, which is a 50% growth rate.