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Borrowed money from a brokerage used to purchase securities, with the purchased securities serving as collateral for the loan.
Buying on margin allows investors to purchase more securities than their cash balance would otherwise permit. The Federal Reserve's Regulation T requires a minimum initial margin of 50%, meaning you must put up at least half the purchase price. Maintenance margin (typically 25-30%) is the minimum equity that must be maintained. If your account equity falls below this level, you receive a margin call requiring you to deposit additional funds or sell securities. Margin amplifies both gains and losses. If you buy $20,000 of stock with $10,000 of your own money and the stock drops 25%, you lose 50% of your equity.