What are the differences between a margin account and a cash account?

The main differences between margin and cash accounts are:

Margin accounts with a balance of $2,000 or more (not including option positions) can trade with leverage. Cash accounts can only trade with their own funds.

Margin accounts with a total account equity of $2,000 or more can place short sale orders. Cash accounts can only sell positions that they already own.

Margin accounts are subject to a day trading limit. For a margin account with a total account equity below $25,000, investors can day trade up to 3 times within 5 consecutive business days. Cash accounts can day trade with settled funds.