What is buying on margin? Use an example to demonstrate how buying on margin enables currency traders to make large profits on small investments

Buying on margin refers to an act of buying an asset for a portion of its worth and borrowing the rest from the broker or bank.

Let's say a company sells 100 shares at $10.

To buy it we use $500 of our money and borrow the rest $500 on buying margin.

a month later, the value of the shares jumped to $ 30.

this way, we made $2000 after returning the margin.