The trouble with using margin when trading or investing is that 9/10 it can be your best friend. But when it turns against you just the one time it can completely wipe you out.
The best advice for the majority of market participants is to never use it or if you do, use it both liberally and with small doses. For example, use £1,000 to control £2,000 in stock is fine but £1,000 to control £10k or even £20k is pure madness.
And when it comes to online Foreign Exchange offering 200:1 or even 400:1 margin the don't even consider it because that whole industry is a sophisticated scam setup to transfer client money to the broker accounts. Why else do you think the FX companies market the incredible margin offered so aggressively?
Summary: Unless you've got a history of using margin profitably steer clear of it.
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