What can you do when you are trading with margin as opposed to not having it in a brokerage account?
Question:
Answer:
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Margin just means you are allowed to borrow money to make purchases, and then pay if off with proceeds. It does increase your buying power, but again, that is because you are borrowing money to do it.
Buying securities on margin can increase your gains because you are increasing your buying power, conversely, and more importantly, you can also increase your losses.
Trading on margin is not advisable for the casual investor.
To answer your other question, selling stocks bought on margin still require the standard settlement as if they were bought with cash.
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