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Glossary ยท investing

What is Margin?

Borrowed money from a broker used to buy more securities than cash on hand.

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Margin accounts allow leverage but carry interest costs and the risk of margin calls if positions decline. Regulation T in the US limits initial equity margin to 50% of position value.

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Frequently asked questions

What is a margin call?

A demand from the broker to add cash or liquidate positions when account equity falls below the maintenance requirement.

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