1. The use of borrowed money to purchase securities, referred to as "buying on margin." 2. The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account. 3. In a general business context, margin refers to the difference between selling price and the cost of goods sold.
Allows investors to buy securities by borrowing money from a broker. The margin is the difference between the market value of a stock and the loan a broker makes. Related: Security deposit (initial).
An account in which a customer purchases securities on credit extended by a broker/dealer. Rules of the Federal Reserve Board and NASD govern margin accounts. (See Regulation T)