buying on margin

Definition

A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral. Usually done using a margin account at a brokerage, and subject to fairly strict SEC regulations.

Use buying on margin in a sentence

You need to be very careful when you are buying on margin and make sure that you know what you are getting.

​ Was this Helpful? YES  NO 2 people found this helpful.

The risk incurred by buying on margin can't be indulged by everyone, especially with those SEC hawks hovering like... very interested birds.

​ Was this Helpful? YES  NO 9 people found this helpful.

My hedge fund manager went out of business after we learned he had borrowed shares by buying on margin before the company he had chosen went bankrupt.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
cashless exercise initial margin