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<p>[QUOTE=&quot;WingedLiberty, post: 1168459, member: 26030&quot;]Now lets say you guessed wrong</p><p><br /></p><p>You have $100,000 to invest</p><p><br /></p><p>and with the margin account you can buy $200,000 worth of silver</p><p><br /></p><p>but you bought silver today at $48 an ounce</p><p><br /></p><p>let&#039;s say in 6 months silver dropped from $48 all the way back down to $16 (oh no!)</p><p><br /></p><p>So your $200,000 in silver is now worth only $67,000</p><p><br /></p><p>So you sell it all</p><p><br /></p><p>However you still owe the brokerage house $103,000</p><p><br /></p><p>So your $100,000 in initial cash is GONE ... and you owe the brokerage firm another $36,000 </p><p>time to sell your house or declare bankruptcy</p><p><br /></p><p>Margin amplifies your gains and losses ... so it&#039;s higher risk for sure![/QUOTE]</p><p><br /></p>

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