The Relationship between Margin, Leverage and Volatility
This lesson assumes that you understand your financial goals and are familiar with all the risks and opportunities online trading provides. You can schedule a free call with our expert trader that will help you find the best way to achieve your financial goals.
Leverage and Volatility increase risks for brokers and traders
Margin increases leverage which can heighten risk for traders and brokers. The more volatile a security, the riskier it is for margin traders.
To protect themselves against excessive losses incurred by clients, brokers carefully assess the risks of individual securiti