noun
margin
Money or assets an investor provides as security for borrowed trading funds.
The investor deposits margin before opening the trade.
Etymology
Margin means an edge or allowance beyond a main amount. In trading, it names the investor’s required security supporting a larger borrowed or leveraged position.
More examples
- The broker checked the margin.
- She studied margin requirements.
- The account held sufficient margin.
Forms
margin · margins
Similar words
- collateral
- The broader security for a loan.
- deposit
- Money placed in an account without necessarily supporting borrowed trades.