Understanding the benefits and risks of margin - Fidelity Investments
Buying stocks on margin is a process where you borrow money from your brokerage to purchase more shares than your current cash balance would allow. This strategy uses your existing securities as collateral to provide leverage, which can amplify both potential gains and losses. 1. Open and Fund a Margin Account how to buy stocks on margin
You cannot trade on margin with a standard cash account; you must apply for a specific margin account. Understanding the benefits and risks of margin -