Skip to main content

What — Is Buying On Margin

: The percentage of the purchase price you must pay with your own cash. Under Regulation T , this is typically 50% for stocks.

Buying on margin is the practice of from a brokerage to purchase securities, using the assets in your account as collateral . It allows you to buy more stock than you could with cash alone, effectively using leverage to amplify your potential returns—and your potential losses. ⚙️ How it Works what is buying on margin

To buy on margin, you must open a specific , which is different from a standard cash account. : The percentage of the purchase price you

: This is the total amount of money available to buy securities, including your own cash and the potential margin loan. ⚖️ The Impact of Leverage you must open a specific