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Margin

Borrowing from your broker to buy securities, using your holdings as collateral.

Orders & TradingBeginner

Definition

In a US margin account, the initial requirement under Regulation T is generally 50% of the purchase, and brokers also set a maintenance minimum. Interest accrues on the loan. If the account value falls too far, the broker can demand more cash or sell positions.

Watch out for

Margin magnifies losses and the broker can liquidate without your consent. Fees and interest apply.

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