Margin trading is a powerful strategy that allows investors to borrow funds from their broker to increase their purchasing power. While it has the potential to amplify gains, it also comes with inherent risks, one of the most significant being the cost of borrowing—the margin trading interest rate. This cost can dramatically affect your profitability, especially as interest rates fluctuate. Here’s a comprehensive look at how interest rates impact margin trading and what you should keep in mind.
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