What Is Buying Stock On Margin at Buying

What Is Buying Stock On Margin. Margin trading allows you to buy more stock than the available funds in your brokerage account. Learn about how margin trading works and the risks so you can make an informed decision about whether it's right for you.

Margin trading involves qualifying to borrow money against your existing stocks to buy more stock. Buying on margin involves getting a loan from your brokerage and using the money from the loan to invest in more securities than you can buy with your available cash. 100% of the minimum 20% margin required on trade value for stocks in the cash segment or span +exposure in the derivative segment.

Stock Market Crash of 1929

Margin debt balances are real debt. You can think of it as a loan from your brokerage. Trading on margin is a way of increasing the impact of your investment dollars, because you only put up part of the money to buy shares of stock. 100% of the minimum 20% margin required on trade value for stocks in the cash segment or span +exposure in the derivative segment.