How Do You Buy A Commodity Stock On Margin?
The act of buying a commodity stock on margin is no different from buying any stock on margin. That is the easy part. The difficult part is finding stocks that benefit from rising commodity prices and selecting the ones that will perform well during a commodity bull market. This article will help you get started, but you will need to do your homework if you want to succeed. Step 1 The first step is to open a margin account at an online broker. If you are asking the question, “how to buy a commodity stock on margin?” you are probably looking to do-it-yourself. The fees are low and setting up a margin account is relatively easy, if you are approved. When you open a brokerage account, you do not automatically have a margin account. You must apply for a margin account and get approved to have it. Ask your broker to learn about how they handling the application and approval process for opening a margin account. Step 2 What is a margin account? A margin account allows an investor to use stoc
