What Does Buying On Margin Mean at Buying

What Does Buying On Margin Mean. Buying on margin is borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage.

You need to have a margin account with the broker, and it is different from the demat account. Buying on margin is borrowing money from a broker in order to purchase stock. Buying on margin meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest.

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Margin trading is built on this thing called leverage, which is the idea that you can use borrowed money to buy more stocks and potentially make more money on your investment. You wouldn’t normally borrow margin from a broker in crypto trading. This is very risky and may lead to a margin. To buy on margin means using the money borrowed from a broker to purchase securities.