Why I Use A Margin Account To Buy And Sell Stocks | Fidelity
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Published 2020-11-21
I always assumed that a having a margin account meant trading with borrowed money. After actively trading for a few months, I've learned there's a lot more to margin than borrowing. Having a margin account is a very useful tool which can help you become a successful trader in the stock market.
Trading on margin enables you to leverage securities you already own to purchase additional securities, sell securities short, or access a line of credit. While there are many benefits to establishing a margin account, it’s also important to understand the risks.
The main reason I use a margin account is to avoid trading violations.
Below are links and resources that explain how a margin account works.
👉🏻 Understanding the benefits and risks of margin:
www.fidelity.com/learning-center/trading-investing…
👉🏻Avoiding cash account trading violations:
www.fidelity.com/learning-center/trading-investing…
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DISCLAIMERS:
-I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just my viewpoints, and ideas for your entertainment only.
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All Comments (21)
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❗️Subscribe To My Youtube Channel! Let me know if you got hit with trading violations as well! Feel free to leave any feedback or questions in the comments!
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this cleared everything up for me benny thanks I was always a bit confused seeing people using margin on their fidelity accounts, never exactly knew what that meant.
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Omg!!! I wish I could smash the like button a million times!! Thank you so much!!! I was sooo looking forward to this video!!! I am so grateful for you starting this community and sharing your journey! I’d love to see a video about day trading! PS - team fidelity for life!
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Shout out to the Clorox wipes product placement and Sponsorship!!!! Lol! More serious! Sorry about the good faith violation.
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Sometimes learning the hard way is the best bro! Experience is the best teacher. Great to see the channel growth man! Love it
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Love your explanation - really clear and easy to follow.
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Thanks for explaining this topic, you are one of the best YouTubers making great content teaching and explaining! 👍🏼
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I been trying to figure margin accounts out. Thanks for explaining it in a easy to understand way, bro!
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I love the setup man! Subbed!
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This video was perfect, love the direction you're going with the channel bro! The content is getting doper by the vid 💯🏁
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you explain very well! so clear! thanks
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Dang new to trading and just came across your video. Totally unlike the other few investing vids I've seen so far but I like your style and you had exactly the info I'm looking for! Thanks man
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Awesome video man! Great explanation on why you use a margin account
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I legit learned some additional benefits of margin. I have a margin account on robinhood but I don't really do it. Then again, I also don't day trade. However, I enjoy learning your tactics and I also enjoy watching you get rich! Keep it up! Great video!! :)
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Good stuff. Thank you for the info.
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Thanks for the info My Guy
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Hi Benny, just happen to come across your channel. Thanks for the breakdown. the cash margin is so important to keep as your last line of defense
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This answered my questions perfectly! Thank you! Margin it is.
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Thank you for details on a margin account.
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Great explanation about margin and cash accounts and how to trade them.
