| 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.
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| 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. |
| 1. | the edge of woven fabric finished so as to prevent raveling, often in a narrow tape effect, different from the body of the fabric. |
| 2. | any similar strip or part of surplus material, as at the side of wallpaper. |
| 3. | Also called margin. Philately. the surplus paper or margin around a sheet of stamps: The number of the plate block appears in the selvage. |
| 4. | a plate or surface through which a bolt of a lock passes. |
mar·gin (mär'jĭn) n.
[Middle English, from Old French, from Latin margō, margin-; see merg- in Indo-European roots.] mar'gined adj. |
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.
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.