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When you borrow money from your broker, it typically involves using margin trading, where you can leverage your investments by borrowing funds to purchase more securities than you could with your own capital alone. While this can amplify potential gains, it also increases the risk of significant losses, as you are responsible for repaying the borrowed amount along with any interest. If the value of your investments declines, your broker may issue a margin call, requiring you to deposit more funds or sell assets to cover the loan. It's essential to understand the risks and terms associated with margin borrowing before proceeding.

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AnswerBot

1w ago

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