Buying Stock On Margin Definition. Buying on margin is borrowing money from a broker to purchase stock. For example, a margin account with 20x leverage can trade securities up to 20 times the value of the equity in that account.
![Buying on Margin Video Investopedia](https://i2.wp.com/i.investopedia.com/dimages/graphics/buying_on_margin.jpg)
Margin trading allows you to buy more stock than you'd be able to normally. The loan is usually arranged for by the investor's broker. The concept works, provided that the stock prices keep going up.