What is a Margin Account ?

Margin account in financial terms can be defined as a type of brokerage account used by investors wherein the brokers lend money to investors for purchasing financial items. The investors who borrow money are charged with a monthly interest paid and the broker's borrowed money.

Margin account is a type of brokerage account used by investors wherein the brokers lend money to them for purchasing financial items.

* A margin account is only suitable for an experienced investor who is less vulnerable to market risk.

* There is no structured repayment plan available for margin accounts; however, the investor has to maintain the value of the margin account; this is known as maintenance margin.

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