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.