buying on margin


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.

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

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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.

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