What is Margin Money?
5paisa Research Team
Last Updated: 09 Jul, 2024 11:21 AM IST

Content
- Introduction
- What is margin money?
- Understanding Margin and Margin Trading
- Initial Margin
- Advantages and Disadvantages of Margin borrowing
- Example of Margin
- Other uses of margin
- What are the risks of margin trading?
- Bottom Line
Introduction
Margin is the amount of equity that an investor has in their brokerage account. "To buy on margin" refers to buying securities with money borrowed from a broker. To do so, you need a margin account rather than a regular brokerage account. In a margin account, the broker lends the investor money to purchase more securities than they could have otherwise with their account balance.
This article explains margin money, the meaning of margin money, and its applications in the stock market and trading.

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