Margin (Investing)
InvestingBorrowing money from a broker to purchase investments, using your portfolio as collateral.
Example
Example: Consider an investor building a $100,000 portfolio. Margin (Investing) — borrowing money from a broker to purchase investments, using your portfolio as collateral. — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.