Financial Terms

Margin account

Allows you to use the borrowed funds of the broker to buy assets at interest. In fact, it is access to leverage that allows you to increase your profits. Typical available leverage is 2: 1, that is, a trader holding $ 500 will be able to buy assets for 1000. The interest rate is determined by the broker, the payments are monthly. In this case, the trader will have to maintain a minimum margin of about 30-35% of the loan amount. If the amount on the account is not enough, the broker can either request an account replenishment or the sale of assets.