Securities Arbitration Lawyers BlogMargin Account Guidelines
Key Information to know before you get started.
While the potential gains associated with securities trading in a margin account may be substantial, so can the potential losses. This is critical for investors to understand, along with the facts and risks associated with this type of trading.
Simply put, a margin account is an account offered by brokerage firms that allows investors to borrow money to buy securities. The investor typically deposits 50 percent of the value of the purchase and the brokerage firm loans the investor the rest of the money, using the securities as collateral.