For example, if you purchased 100 shares of a stock at $50 per share using $2,500 in margin and $2,500 in cash, your equity would initially be 50% ($5,000 total stock value - $2,500 margin).

Cash accounts are beginner-friendly investment accounts for simple trading. You can invest in borrowed money with a margin account. ... An icon in the shape of a person's head and shoulders.