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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Margin  

Definition 1.

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.
 

Definition 2.

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).
 

Definition 3.

Definition 1
 

Definition 4.

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)
 
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