When investors have had some success with their strategies, they often want to alter those winning strategies to possibly make even more money.
Investors have used margin accounts to boost their buying ability for years. With these accounts, the investor borrows some money from his or her broker and uses an amount of stock – the margin – to secure the loan.
The concept of margin accounts is one that often comes up in the business press. Since bad news makes headlines, they are often mentioned when someone ends up losing money. This, however, doesn't mean that it is always a bad idea to use them or that losses are inevitable. It just means that publications skew perceptions. Here is an honest overview of margin accounts and how they work.