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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. In this video, well explain margin, discuss its potential risks and rewards, 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 Reserves 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. Using margin, you can put up less than the full cost of a trade, enabling larger or more diversified trades. This is called leverage.ť When combined with proper risk and money management, leverage can potentially lead to