: The percentage of the purchase price you must pay with your own cash. Under Regulation T , this is typically 50% for stocks.
: The minimum amount of equity you must keep in your account at all times. This is often around 25% of the total market value of the securities. what is buying on margin
: Since this is a loan, your broker charges interest on the borrowed amount. Rates often range from 5% to 12%+ and accrue daily. : The percentage of the purchase price you
Buying on margin is considered a high-risk strategy and is generally not recommended for beginners. Buying on Margin: How It Works and Key Risks - Wealthsimple This is often around 25% of the total
: This is the total amount of money available to buy securities, including your own cash and the potential margin loan. ⚖️ The Impact of Leverage