> Margin > Benefits & Risks


What is a Margin Loan?

It is additional buying power that the investor can borrow using his investment portfolio as collateral. This loan can be used to buy additional investments, thereby increasing the opportunity to magnify returns.



Advantages of Margin Loans

  • Increase potential returns
  • A magnified ability to capture arising opportunities in the market
  • Increase the buying power of the client


Risks of Margin Loans

  • Financing costs
  • Higher volatility and investment risks
  • Subject to margin calls or liquidation if the value of investments declines below a predetermined value
 
To invest in the largest group of mutual funds from a single accountOpen Your Free Account
© 2016 Derayah Financial. All Rights Reserved
By using this site, you agree to the Terms of Service and Privacy Policy .
Derayah Financial, P.B: 286546, Riyadh 11323, Saudi Arabia
Licensed by the Capital Market Authority 08109 - 27