Borrowing money to buy stocks can double your gains in a rally but can also wipe out your entire account in a crash, making it risky for everyday investors.

• Margin debt lets investors borrow from their broker to buy more stock, doubling buying power but also doubling potential losses.
• If a portfolio's value falls too far, brokers issue a margin call and can sell off stocks without permission, often at the worst possible prices.
• Widespread margin calls during a downturn can snowball, turning a normal dip into a much bigger market crash.
• Investors who use margin often get wiped out and miss the recovery, while those who invested only cash can hold on and profit when the Fed prints money to support the market.
• Avoiding margin debt protects investors from being forced out right before a rebound.

Outlook: Margin debt levels tend to swell during bull markets and then trigger painful chain reactions when stocks turn lower, so caution with borrowed money remains the safer long-term approach.