USA HISTORY

Detailed explanation-1: -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 if their investments outperform the cost of the loan itself.

Detailed explanation-2: -Margin lending is a type of loan that allows you to borrow money to invest, by using your existing shares, managed funds and/or cash as security. It is a type of gearing, which is borrowing money to invest.

Detailed explanation-3: -"To margin” or “buying on margin” means to use money borrowed from a broker to purchase securities. You must have a margin account to do so, rather than a standard brokerage account.

Detailed explanation-4: -For example, if you have $5, 000 cash in a margin-approved brokerage account, you could buy up to $10, 000 worth of marginable stock: You would use your cash to buy the first $5, 000 worth, and your brokerage firm would lend you another $5, 000 for the rest, with the marginable stock you purchased serving as collateral.