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How can an investor mitigate some of the risk in margin trading?

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How can an investor mitigate some of the risk in margin trading?

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Although purchasing stocks on margin always carries a degree of risk, you can manage that risk by: • Limiting your use of leverage by not using your entire margin balance • Diversifying your investment portfolio • Using margin for short-term investments • Monitoring the market and your investments against your risk tolerance and target goals.

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