margin account
- An account held by a client at a brokerage firm that allows the client to purchase securities using the firm's credit
- After understanding the risks involved, the investor decided to open a margin account to increase her purchasing power.
- Because he had a margin account, he was able to purchase more shares of the technology company than his cash would have allowed.
- When the stock plummeted, those trading with margin accounts found themselves in serious debt to their brokerage firms.
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