Investor Glossary-marginInvestor Glossary-marginInvestor Glossary-marginInvestor Glossary-marginInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Margin

The HTML to link to this page
 

Margin is money borrowed from a broker for trading purposes. Brokers generally require additional disclosures for opening margin accounts, and charge interest when margin is used. Margin is commonly expressed as a percentage; an account 150% on margin, for example, holds $150 worth of positions for every $100 of actual cash in the account. Maintenance margin, the amount of margin required to hold an existing position, is regulated by the exchange where the asset is listed, and may differ from the initial margin mandated by the Federal Reserve. Margin requirements for holding positions overnight may be greater than margin requirements for opening and closing intraday positions.

Margin calls occur when an account falls below minimum maintenance level of 25% (or higher if so stated in the broker's margin agreement). Brokers will generally give the account holder a short period of time to reduce margin in a manner of their own choosing. If margin has not been sufficiently reduced, the broker will automatically liquidate positions at its own discretion.



Rate this margin definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, APR, liquidity ratio, labor relations, VIX, current ratio, 1031 exchange, balance sheet, ex-dividend, FTSE, risk management, Zero Cost Collar, retained earnings, dividends payable, stock market close, phantom income, diluted share, debt service coverage, required rate of return, 1035 exchange, command economy, inflation, 144a, real GDP, annual return, limit order, deferred tax, stock split, 401a, wholly-owned subsidiary, margin rate, class C shares, option premium, in escrow, open position, deferred revenue, Key Rate Duration, minority interest, per diem, ex-dividend date, covered put, reverse mortgage, cancelled check, average price per share, FICO score, quality assurance, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use