Margin call

When an investor borrows to bet on markets, they put down a deposit known as “margin”.

When investors buy shares or other financial assets, they might borrow money with the aim of boosting their returns. This is known as “leverage” or “gearing”, because using borrowed money amplifies movements in the underlying asset price, making both gains and losses far greater.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.