<topic sku="core" tNum="288327" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about margins and margin interest</title><category>investing</category><klink type="cncpt">Tell me about margins and margin interest</klink></index>
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<p>A margin account is a brokerage account that allows an investor to buy <glossary tNum="287082">securities</glossary> on credit or borrow against securities held in the account. Interest is charged on such borrowing, but usually at better rates than other forms of debt. Trading on margin can enhance investment returns considerably, but like all leveraged activities, it can backfire if your stocks decrease in value. The federal government limits the amount you can borrow against your investments.</p>