Buying on margin occurs when an investor buys an asset by borrowing from a bank or broker. The investor uses marginable securities in their broker account as collateral. An investor must fund at least 50% of a security's purchase price with cash or other collateral. If the investor's equity dips below the maintenance margin, the investor may receive a margin call and will be required to deposit funds to bring the balance in the account to the required maintenance margin. Buying on margin is not for beginners but represents an opportunity to exploit market opportunities for skilled traders, even with relatively limited investment capital. 82f9