How can I make or lose money using a margin account?
When you buy on margin, you are borrowing part of the purchase price of a security from Zecco Trading. Margin allows you to buy more of a stock than the cash in your account will cover. If that margined stock decreases in price, may incur a margin call, which will require an additional deposit to meet the margin maintenance requirement, and also you incur an unrealized loss. You will realize the loss when you sell the stock at the decreased price. If the stock increases in value, you will earn an unrealized gain, which becomes real when you sell at the higher price. You pay a small amount of interest on the margin you used to purchase the stock as well.
