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Margin Account

An account in which stocks can be purchased for a combination of cash and a loan.

The loan in the margin account is collateralized by the stock, and if the value of the stock drops sufficiently, the owner will be asked to either put in more cash or sell a portion of the stock.

Related Terms:

Special Memorandum Account
(SMA) - A holding place for available cash, a double bookkeeping entry.It increases when:A client’s portfolio ...

Margin Requirements
The amount of cash or marginable securities (for example, blue chip stocks) that an account holder ...

A deposit made by a trader with a clearinghouse to ensure that he/she will fulfill any ...

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