What Is A Margin Position? Feb. 14, 2012. Margin accounts allow brokerage customers to buy securities with money borrowed from the brokerage firm. If the value of the securities in the margin account falls below a certain level, the firm generally will ask the customer to deposit more cash or securities into the account. What
What Is Buying On A Margin? Buying on margin is borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account. What
What Does Buying Stocks On Margin Mean? What does buying stocks on margin mean? Buying on margin involves getting a loan from your brokerage and using the money from the loan to invest in more securities than you can buy with your available cash. Through margin buying, investors can amplify their returns — but only