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a margin account has more features than a cash account and theyamp;#39;re used by more active or experienced investors a key difference between a cash account and a margin account is that with a margin you can borrow funds to buy investments whereas with a cash you must pay for all purchases by the settlement date and because of this a margin account is an account youamp;#39;ll apply to and be approved for just like a loan or any other type of credit think of a margin account like a home equity line of credit or a heloc homeowners who have a heloc use the value of their home as collateral or leverage to give them a line of credit they can then use that line of credit for whatever they like like home renovations or a trip typically a heloc will allow you to borrow up to 65 of the market value of a home with a margin account investors use their investments as collateral if they go to buy stock they would pay up to at least 30 percent of the cost and the broker would lend the re
