USA HISTORY

Detailed explanation-1: -Description: The process is fairly simple. A margin account provides you the resources to buy more quantities of a stock than you can afford at any point of time. For this purpose, the broker would lend the money to buy shares and keep them as collateral.

Detailed explanation-2: -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-3: -What is buying on margin? An investor can buy securities using money borrowed from a brokerage firm (rather than paying for the securities in full). This is known as “buying on margin.” Buying on margin requires opening a margin account and depositing an initial amount of purchased securities.

Detailed explanation-4: -"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-5: -Buying on margin involves an investor’s brokerage firm lending the investor money against the value of cash or investment assets currently in the margin trading account. The amount borrowed is referred to as a margin loan that the investor can use to purchase additional investments.