[mahr-jin] Pronunciation Key | 1. | the space around the printed or written matter on a page. |
| 2. | an amount allowed or available beyond what is actually necessary: to allow a margin for error. |
| 3. | a limit in condition, capacity, etc., beyond or below which something ceases to exist, be desirable, or be possible: the margin of endurance; the margin of sanity. |
| 4. | a border or edge. |
| 5. | Philately. selvage (def. 3). |
| 6. | Finance.
|
| 7. | the difference between the amount of a loan and the market value of the collateral pledged as security for it. |
| 8. | Commerce. the difference between the cost and the selling price. |
| 9. | an amount or degree of difference: The measure passed by a margin of just three votes. |
| 10. | Economics. the point at which the return from economic activity barely covers the cost of production, and below which production is unprofitable. |
| 11. | Entomology. the border of an insect's wing. |
| 12. | to provide with a margin or border. |
| 13. | to furnish with marginal notes, as a document. |
| 14. | to enter in the margin, as of a book. |
| 15. | Finance. to deposit a margin upon. |
| 16. | Stock Exchange. to purchase (securities) on margin: That stock was heavily margined during the last month. |
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.
| mar·gin
(mär'jĭn) Pronunciation Key
n.
tr.v. mar·gined, mar·gin·ing, mar·gins
[Middle English, from Old French, from Latin margō, margin-; see merg- in Indo-European roots.] mar'gined adj. |
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2006 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
margin
| margin | |
noun | |
| 1. | the boundary line or the area immediately inside the boundary |
| 2. | an amount beyond the minimum necessary; "the margin of victory" |
| 3. | the amount of collateral a customer deposits with a broker when borrowing from the broker to buy securities |
| 4. | (finance) the net sales minus the cost of goods and services sold [syn: gross profit] |
| 5. | the blank space that surrounds the text on a page; "he jotted a note in the margin" |
| 6. | a permissible difference; allowing some freedom to move within limits [syn: allowance] |
margin mar·gin (mär'jĭn)
n.
- A border or edge, as of an organ.
- A limit in a condition or process, beyond or below which something is no longer possible or acceptable.
- An amount that is allowed but that is beyond what is needed.
- A measure, quantity, or degree of difference.
Copyright © 2002, 2001, 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Margin
1. Borrowed money that is used to purchase securities. This practice is 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, the difference between a product's (or service's) selling price and the cost of production. 4. The portion of the interest rate on an adjustable-rate mortgage that is over and above the adjustment-index rate. This portion is retained as profit by the lender.
Investopedia Commentary
1. Buying with borrowed money can be extremely risky because both gains and losses are amplified. That is, while the potential for greater profit exists, this comes at a hefty price -- the potential for greater losses. Margin also subjects the investor to a number of unique risks such as interest payments for use of the borrowed money.
2. For example, if you hold futures contracts in a margin account, you have to maintain a certain amount of margin depending on how the market value of the contracts change.
3. Gross profit margin (which is the difference between revenue and expenses) is one measure of a company's performance.
4. The formula for calculating the interest rate on an adjustable-rate mortgage is the adjustment-index rate (e.g. Treasury Index) plus the percentage of the margin. For example, if the Treasury Index is 6% and the interest rate on the mortgage is 8%, the margin is 2%.
Related Links
Margin Trading Tutorial
The Bottom Line On Margins
How Does Your Margin Grow?
Mortgages: Fixed-Rate Versus Adjustable-Rate
See also: Adjustable-Rate Mortgage - ARM, Broker's Call, Buying Power, Call Loan, Equity, Initial Margin, Maintenance Margin, Margin Account, Margin Call, Minimum Margin, SPAN Margin, Treasury Index
Also spelled: margen
margin
- The amount of funds that must be deposited when purchasing securities. See also initial margin requirement.
- The equity in an investor's account. See also maintenance margin requirement.
Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Main Entry: mar·gin
Pronunciation: 'mär-j&n
Function: noun
1 : the difference between net sales and the cost of the merchandise sold from which expenses are usually met or profits derived
2 : the amount by which the market value of collateral is greater than the face value of a loan
3 a : cash or collateral deposited in a regulated amount by a client with a broker who is financing the purchase of securities —see also REGULATION T b : a deposit made with a broker by a client who is trading in futures
Margin
Mar"gin\, n. [OE. margine, margent, L. margo, ginis. Cf. March a border, Marge.]1. A border; edge; brink; verge; as, the margin of a river or lake. 2. Specifically: The part of a page at the edge left uncovered in writing or printing. 3. (Com.) The difference between the cost and the selling price of an article. 4. Something allowed, or reserved, for that which can not be foreseen or known with certainty. 5. (Brokerage) Collateral security deposited with a broker to secure him from loss on contracts entered into by him on behalf of his principial, as in the speculative buying and selling of stocks, wheat, etc. --N. Biddle. Margin draft (Masonry), a smooth cut margin on the face of hammer-dressed ashlar, adjacent to the joints. Margin of a course (Arch.), that part of a course, as of slates or shingles, which is not covered by the course immediately above it. See 2d Gauge. Syn: Border; brink; verge; brim; rim.Margin
Mar"gin\, v. t. [imp. & p. p. Margined; p. pr. & vb. n. Marginging.]1. To furnish with a margin. 2. To enter in the margin of a page.Copyright © 2008, Dictionary.com, LLC. All rights reserved.











