Margin account

A margin account is a brokerage account that allows investors an ability to trade securities with funds borrowed from their broker. The brokerage leverages the client’s account holdings (cash and securities) as collateral when money is borrowed. If the funds in a margin account fall below the required minimum balance, a margin call is issued in the form of an email. If this occurs, you will either have to deposit more funds into the account or sell off some positions to keep your account active.

There are several different types of margin accounts. For instance, you can open an individual, joint, or organization margin account to trade stocks, options, ETFs, or physical gold. You can then use the investments you hold as leverage to give you more buying power.