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For traders and investors, margin can come in handy when potential opportunities arise. Margin can increase buying power, enable access to advanced trading strategies, and even act as a line of credit. Weamp;#39;ll explain margin, discuss its potential risks and benefits, and list the requirements to enable margin in your brokerage account. Essentially, margin is money borrowed from your broker to buy stocks or other securities. ing to the Federal Reserveamp;#39;s Regulation T, investors can borrow up to 50% of the purchase price of a marginable security. For example, an investor with a $5,000 account could borrow an additional $5,000 to purchase up to $10,000 worth of stock. The securities in your account act as collateral, and you pay interest on the money borrowed. There are two kinds of margin requirements: initial and maintenance. The initial requirement is the amount you need to have up front to enter the positiontypically 50% of the stockamp;#39;s purchase price. The mainten
