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HomeRight Arrow TerminologyRight Arrow Margin

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Margin

Margin is the minimum fund you need in your brokerage account to make trades. Your broker uses margin to guarantee your ability to open new positions and maintain them.

Buying on margin occurs when you borrow from your broker to trade financial products. This is done by making an initial deposit payment to the broker to cover credit risks and using the marginal financial products in their brokerage account as collateral.

Read more about margin here.

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