Margin lending has experienced a 39% increase in Australia in the 12 months to June this year, but there are still a lot of investors that are not sure how a margin loan works.

In the same way as property investors put down a deposit and borrow to purchase a rental property, margin lending allows you to buy a share or managed fund portfolio.  In fact, many investors secure a margin loan by using an existing share portfolio as the deposit, which can make the process even easier.