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the dangers of margin trading and how it affects you welcome to stocks galore the place for those in passionate pursuit of investments and personal finance smash the subscribe button now and hit the notification bell to be notified when new videos are released you may ask what exactly is margin trading margin trading is a type of trading that allows you to borrow money from your brokerage firm to trade on margin the broker lends you money at a certain interest rate and takes collateral as an assurance margin trading lets you take bigger positions than your cash would allow and can be used as a hedge against risk exposure not all brokerages offer this service so check with your brokerage before deciding if itamp;#39;s right for you the risks of using margin trading for stocks margin trading is risky because the amount of assets you are using to purchase shares can go drastically down it can often lead to market crashes which are often the result of margin trading margin trading is when