A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products.

On most investments, the initial margin is 50%, meaning that if you buy $10,000 worth of stock, you’ll have to put up at least $5,000 in cash. Maintenance margin The absolute minimum amount of ...

If a margin account with your broker runs short of funds, you could face a margin call. Here’s what that means. advertisement. Bankrate. Margin call: What it is and how to avoid one.