Brokers define account minimums to begin margin ... your loss would have been $1,000 without buying on margin — $4,000 ending value minus $5,000 initial investment. But if you borrowed $5,000 ...

The simple definition of margin is investing with ... own cash and a loan against the money you have invested. Buying stocks on margin is essentially borrowing money from your broker to buy ...

Buying securities with borrowed money is commonly referred to as buying on margin, which refers to assets that an investor must deposit with a broker-dealer to obtain a loan. Additionally ...