Explain stock Margin Account??

Question

I have own $ 5000 cash in Margin account ... I want to purchase 100 stocks ( total value $ 6000 )... I borrow 1000 from bank.. . Can i sell the same day .. total vlue is $ 6050.. How much total i earn ???????? how much bank earn from me??

Answer 1

You are going to lose a LOT of money, I can just tell!

"Margin" is a LOAN.  You pay interest on it.  If the stock goes down, you still owe the money.

Try not to get yourself in too much trouble!