Margin trading, which allows investors to gain a significant position in the market with less capital investment upfront, is not restricted to stocks. The concept also applies to forex trading, and commodity trading. It also applies to derivative segments such as futures and options across stocks, commodity and forex. The success of margin trading lies in how accurately you predict price movements. Sharper gains are in store when the market falls in line with your price speculation. Losses can mount if the market goes against your prediction.