Buying Stock On Margin Apr 2026

Buying stock on margin is the process of borrowing money from a brokerage firm to purchase more shares than you could afford with your own cash alone. This practice uses the securities in your account as collateral for the loan.

To trade on margin, you must first open a , which typically requires a minimum deposit of $2,000 . Understanding the benefits and risks of margin - Fidelity buying stock on margin