Understanding Margin Trading

• It allows clients to trade more than their capital (correct)
• It enforces strict capital controls
• It limits the potential for earnings
• It reduces the risk of losses

• It decreases potential losses
• It has no impact on potential losses
• It gives a guarantee against potential losses
• It increases potential losses (correct)

• Decreased risk of losses
• Guaranteed profits
• Potential for increased losses (correct)
• No risk involved