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DEFINITION of 'Margin Account'. A brokerage account in which the broker lends the customer cash to purchase securities.The loan in the account is collateralized by the securities and cash.If the value of the stock drops sufficiently, the account holder will be required to deposit more cash or sell a portion of the stock.n a margin account, you are investing with your broker's money. By using leverage in such a way, you magnify both gains and losses.
BREAKING DOWN 'Merchant Account' A merchant account is an agreement made between the business/seller, the bank where the merchant account is held and the payment processor to settle all transactions made by debit and credit cards. The fees associated with these accounts are usually in the following categories: monthly, discount rate and transaction.