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Leverage Effect of Trading on Margins Downside: . No margin: - Purchase 100 shares @ $50 and sell them @ $30 in 1 year. -

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Leverage Effect of Trading on Margins Downside: . No margin: - Purchase 100 shares @ $50 and sell them @ $30 in 1 year. - Profit = ? & Return = ? . Margin: - Purchase 200 shares @ $50 by borrowing $5000 at 9%. - Sell 200 shares @ $30 in 1 year - Profit = ? - Return =

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