Margin Account


Margin Account
A brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities and cash. If the value of the stock drops sufficiently, the account holder will be required to deposit more cash or sell a portion of the stock.

In a margin account, you are investing with your broker's money. By using leverage in such a way, you magnify both gains and losses.


Investment dictionary. . 2012.

Look at other dictionaries:

  • margin account — n. (Finance) An account with a securities brokerage in which the broker extends credit. [WordNet 1.5] …   The Collaborative International Dictionary of English

  • margin account — n: a client s account with a brokerage firm through which the client may buy securities on the firm s credit Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • margin account — ( stocks) A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock; if the value of the stock drops sufficiently, the owner will be asked to either …   Financial and business terms

  • margin account — noun an account with a securities brokerage in which the broker extends credit • Ant: ↑cash account • Hypernyms: ↑brokerage account * * * an account opened by a customer with a brokerage house in which listed securities can be purchased on margin …   Useful english dictionary

  • margin account — an account opened by a customer with a brokerage house in which listed securities can be purchased on margin. Cf. cash account. * * * …   Universalium

  • margin account — Fin an account with a broker who lends money for investments …   The ultimate business dictionary

  • Margin account (Stocks) — A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock and, if the value of the stock drops sufficiently, the owner will be asked to either put… …   Financial and business terms

  • Short Margin Account —    An account requiring a margin deposit from investors who are involved in short selling, as opposed to buying on margin …   Financial and business terms

  • Margin balance — is the total balance in a margin account. If the balance is negative, then the amount is owed to the brokerage firm. If the balance is positive, then the money is available to the account holder to reinvest, or is left in the account to earn… …   Wikipedia

  • margin-račun — margin ràčūn (izg. màrđin margin račun) m DEFINICIJA ekon. račun na koji klijent polaže određeni postotak prodajne cijene, a ostatak podmiruje broker ETIMOLOGIJA engl. margin account: sporedni račun …   Hrvatski jezični portal


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