margin agreement

margin agreement definition - business

margin agreement

The written document that describes the functioning of a margin account and permits a customer's broker to pledge securities in the account as collateral for loans. A customer must sign a margin agreement before undertaking trades on credit in an account.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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