Margin account
By Jude Wallis
A margin account lets an investor buy eligible securities with personal cash and money borrowed from the broker. The securities serve as collateral for that loan.
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Initial margin is the cash share required at purchase. Buying power is cash divided by that share. Account equity is market value minus the loan. Losses reduce equity first while the loan remains due.
Maintenance margin is a later test, not a licence to open a larger position.
How margin trading works is the explainer. The margin buying power calculator is the opening identity. Collateral is what secures the loan.