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Margin |
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MarginThe lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.MarginThe difference between the cost price of a product and the selling price.In trading, the amount deposited with a broker in order to obtain credit for purchase of shares or futures. The margin is the price of a security less credit advanced by the broker.The difference between a market maker's buying and selling prices. Also known as spread.MarginAllows 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).Margin Similar MatchesUnmargined accountUnmargined accountA cash account held at a brokerage firm. Initial margin requirementInitial margin requirementWhen buying securities on margin, the proportion of the total market value of the securities that the investor must pay for in cash. The Security Exchange Act of 1934 gives the Board of Governors of the Federal Reserve the responsibility to set initial margin requirements, but individual brokerage firms are free to set higher requirements. In futures contracts, initial margin requirements are set by the exchange. Margin accountMargin accountAn account with a broker where a client is able to purchase securities on credit after margin has been deposited. Margin securitiesMargin securitiesSecurities which may be bought or sold on margin. In the USA, an approved list of margin securities is published by the Federal Reserve Board. Net profit marginNet profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses have been paid. Further SuggestionsMarginal productDumping margin Marginal propensity to import Value marginal product Initial margin Margin requirement (options) Marginal efficiency of capital Marginal cost variation margin Marginal revenue product Gross profit margin Margin requirement Original margin operating margin Profit margin Marginal value product Marginal tax rate marginal tax rate gross margin Marginal revenue profit margin Effective margin (EM) Margin of safety Undermargined account Maintenance margin |
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