Investment collateral occurs when a trader or investor pledges collateral for a margin loan to buy or short-term. In particular, brokers/traders (BD) offer margin accounts that allow traders to borrow up to 50% of the value of securities. The margin account agreement contains a security agreement for the guarantee. In the case of car loans, the vehicle remains with the borrower, but the same is subordinated to the bank/financier. If the borrower defaults, the bank takes possession of the vehicle after notification and then sells it. The loan account is credited with the proceeds of the sale of the asset in order to recover contributions to the value of the nominal amount and the amount of interest. The remaining balance will be returned to the borrower. In addition to vehicles, the spread of shares and bills of exchange can take place. When banks and brokers use mortgaged collateral as collateral to secure their own transactions and deal with their customers` consent to obtain lower borrowing costs or a discount on fees.

This is called remortgaging. When a customer opens a margin account, the customer must sign a series of contracts in which he accepts the terms under which the loan is extended. By signing the seizure contract, the customer pledges his guarantee as collateral for the loan. The bond contract also allows the broker to re-pledge the securities and pledge the client`s securities as collateral for a loan from a bank. .