When a trader has used all the available capital in an account, additional stocks and options can be bought on margin.

Margin or Margin Debt is capital that is lent to traders in order that they can purchase additional securities. Assuming that the trader has a "Margin" account the brokerage firm will allow additional purchases with their capital. Margin works like debt and traders must pay a nominal interest payment to use the extra funds. Most brokers will usually lend up to 50% of the cost of new purchases using margin. Any margin debt must stay below a specific percentage of the overall account balance. Any changes to account value that reduces the debt to equity percentage below the required percentage will result in a margin call (a request to place additional funds in the account.) If a margin call is not funded brokers have the ability to liquidate assets in order to fund the margin requirement. Any losses to margined positioned are debited to the trader's account first, so that brokers are not in the position of losing their capital. Not all securities can be bought on margin. Stocks with low share prices are usually considered not marginable. Different brokers have different requirements concerning which securities can be purchased on margin.

• Bond Yield Spread
• Deferred Taxes
• Duration
• Forward Rate Agreement
• Individual Retirement Account
• Liquidity
• Margin
• Mortgage Backed Securities
• Security Market Line
• Short Term Investments
• Technical Analysis