Hypothetical judicious use of margin Someone opens a margin account and pays cash for 2000 shares of Exro today.
When it goes over $5.00, it becomes 50% marginable.
They WAIT until it corrects, and then turns higher again, and is still over $5.00, and they double up using their margin.
If they get a margin call, they sell stock to cover it.
They'll very likely be selling at a profit.
It's a built in stop-loss.
Sort of.