Tag: margin buying

  • Investing

    Buying On Margin

    Buying on Margin, also known as Margin Buying, is the practice of buying shares or securities using money borrowed from a broker. The amount of the loan may be several times more than the investor’s own contribution- for example $20 from the investor and $80 from the broker to purchase a $100 share of stock. Since the purchased securities themselves are the collateral backing up the loan, ...