Investors who want to borrow money from a brokerage to buy securities do it through margin trading. Unlike a regular cash account, where you can only make purchases with the money you have on hand, a ...

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Stock trading lets people benefit from fluctuations in stock prices. Any trader or investor is limited to the amount of funds in their account, but margin trading allows them to use additional funds.

Sometimes, investors may find that there are more investment opportunities out there than they have funds available for. In other cases, investors may have unusually high confidence that they’ve found ...

Buying on margin means borrowing money from your broker to purchase stock. It sounds simple, but there are serious risks to consider. Many, or all, of the products featured on this page are from our ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, ...

Cash accounts are brokerage accounts funded by cash via bank account or check. With a margin account, investors can borrow money from lenders to purchase securities. You must have a margin account to ...