A margin account is a type of brokerage account that enables traders to borrow money from the broker to make larger investments than their own capital would allow. In a margin account, users can leverage their investments by borrowing against the securities they already own or through a cash deposit. However, while this can amplify profits, it also magnifies losses. Margin requires investors to maintain a minimum balance, known as the maintenance margin, and failure to do so can trigger a margin call, forcing them to deposit more funds or sell off assets to cover the shortfall.