A brokerage account that allows its customers to borrow cash to purchase securities. The current rate is 50%.
Margin account
A brokerage account that permits an investor to purchase securities on credit and to borrow on securities already in the account. Buying on credit and borrowing are subject to standards established by the Federal Reserve and by the firm carrying the account. Interest is charged on any borrowed funds only for the period of time the loan is outstanding.
Margin account
An account in which a customer may pay only part of the purchase price of securities.
