Margin

Within investing, margin refers to buying securities with borrowed money, usually supplied by the trader’s broker. The trader believes the stock price will rise, thus, being able to pay back the margin amount plus any potential interest rates and keep gains.

Margin allows traders to leverage their trading power by using more money than they have; however, it can be risky if you lose money because you are required to pay back the entire amount borrowed out of pocket.

Traders must qualify to be eligible for margin accounts.