Re: Trading on margin
Yes, the margin call will prevent this from happening a vast majority of the time. However, if you are margined with a stock at 30, and it opens at 12, there is no protection. Likely? No, but if you are going to be investing for a lifetime, you'll see stuff like this. If you also think about the long-term, trying to return say 10% while borrowing at 7% seems like a lot of risk to take for 3% net.
Brokers such as zecco(?) charge $0 trades, and only make money off your margin account.
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