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Buying Stock On Margin Definition. Wide ranges of assets investment types. Learn how to invest right here!
from venturebeat.com
You can think of it as a loan from your brokerage. Buying stock on margin is only profitable if your stocks go up enough to pay back the loan with interest. Buying on margin refers to the purchase of securities using financial leverage (cash loaned by the broker).
The investor uses the marginable securities in their broker account as collateral. Ad · 46,000,000 register users, 178 countries supported, and over 1,800,000 active investors. Buying on margin is the purchase of a stock or another security with money that you’ve borrowed from your broker. 1 typically, the way it works is your brokerage lends money to you at relatively low rates.
