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Basically, margin lending is when you borrow money to invest. While it may seem risky to the uninitiated, it is considered to be not a great deal different to borrowing for the purchase a property. Investors often borrow money to invest when they have a certain amount of their own money to invest, but not enough to make a great deal of difference.

If they borrow a larger amount of money and put it with their own in an investment portfolio, then they stand a chance of making a considerable sum with which they can pay off what they borrowed and still have some left over - though some never actually pay off the sum borrowed, but keep it in operation. People who consider margin lending must realise that it is just as possible to make a great loss as a great profit.

Margin lending suits the investor who is looking for a medium to long-term investment portfolio. They should have a fairly high secure income and be able to stand the suspense of greater the investment risk. They need to have a cash reserve in case they need to meet a margin call. And they need to have a fairly good understanding of the stock market.

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Read more about margin lending and other information on margin loan at the Macquarie Private Wealth website (www.macquarieprivatewealth.com.au).