what are the disadvantages of margin 
there are quite a few disadvantages when it comes to margin trading the first and foremost is the magnified losses when you trade on margin you are borrowing money to amplify your returns if the trade loses you are responsible for the amount of money you borrowed covering your losses and commissions and fees additional disadvantages include interest charges that eat away at your returns margin calls that require you to post additional capital and forced broker liquidations that may result in losses the bottom linemargin trading is extremely risky due to the magnified losses that can occur though margin trading is regulated with a significant amount of rules in place it should still only be done by experienced traders who understand the ins and outs requirements regulatory aspects and the potential for high losses 