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Margin

Borrowed money used to amplify investment positions.

In depth

Margin lets you buy more shares than your cash allows, magnifying both gains and losses. "Margin call" happens when account equity falls below required maintenance level — broker forces you to add cash or sell positions. Excessive margin use is a leading cause of catastrophic individual investor losses.

Frequently asked about Margin

What is Margin?

Borrowed money used to amplify investment positions. Margin lets you buy more shares than your cash allows, magnifying both gains and losses. "Margin call" happens when account equity falls below required maintenance level — broker forces you to add cash or sell positions. Excessive margin use is a leading cause of catastrophic individual investor losses.

Why does Margin matter for investors?

In trading, Margin is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Margin used in practice?

Margin lets you buy more shares than your cash allows, magnifying both gains and losses. "Margin call" happens when account equity falls below required maintenance level — broker forces you to add cash or sell positions.

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