A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
An account in which a broker lends a customer money to purchase securities. Margin accounts are usually opened to take advantage of the opportunity to leverage an investment and not because investors do not have the money to fund the purchase. If the value of the securities, which are used as collateral for the loan, fall significantly the customer will be required to deposit cash or sell some of the securities.
See also: Margin Call, Short Margin Account