Margin Account Vs. Cash Account: The Biggest Differences
There are two types of brokerage accounts to trade and invest, a margin account and a cash account. However, you need a basic understanding of both to select the best one for your trading style, which can help protect your finances. In fact, each account affects your investment in many different ways, which we will now explore. Margin Account In short, a margin account enables an investor or trader to leverage the purchase of new positions or short sell based on the value of the assets in their account. Margin…
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