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Finance Dictionary and Glossary of Investment Terms
In lending, the difference between the value of a loan and the value of the collateral securing that loan. Or more generally, a term used for any of a wide variety of spreads and margins.
1. The difference between prices at which a market maker can buy and sell a security. 2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin, and collateral levels.
The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction).