Buying on margin.Buying on margin can be a great way to get leverage in the stock market. Fist let me ask you a question. How fast do you think you can turn $1000 into $2000? Not that fast that is a 100% increase. Now, how fast can you turn $2000 into $3000? It is a lot easier, thats only a 50% increase. When you buy on margin that is exactly the advantage you get. If you can only afford to buy 100 shares of a stock you can buy 200 with margin. You basically get 2 times your money to buy a stock. Now before you get too excited let me tell you were the extra money comes from. The extra money comes from your broker. It is a loan, with an interest payment. The longer you hold a stock the more interest you will pay on the money you borrowed.Every broker will have a different interest that they will charge. Contact your broker to see how much your interest is before trading. It is an important factor you have to factor into your trading. If you cant pay it off dont trade with it. The other thing you will have to worry about if you have a small account is margin calls. If your account gets under a certain cash level your broker may get worried about your ability to pay them back. They will give you a few days to sell a stock in your account to pay them back. 
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