Margin loans: borrowing to buy shares
Work out how a margin loan multiplies a fall in your own money, and what triggers a margin call.
Module 16 of 26, Fees, borrowed money, and who holds your crypto. Lesson 7 of 7, about 16 minutes.
The takeaway
Borrowing to buy amplifies loss on the downside. A 20% market fall becomes a 40% loss on your own money when you have borrowed as much as you own.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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