- The definition of a margin the blank area around edge of a page or drawing, or the amount that something is higher or lower.
- An example of a margin is the blank area around the print on the page of a book.
- An example of a margin is the New York Giants beating the 49ers by three points.
margin definition by Webster's New World
- a border, edge, or brink: the margin of the pond
- the blank space around the printed or written area on a page or sheet
- a limit to what is desirable or possible
- an amount of money, supplies, etc. reserved or allowed beyond what is needed; extra amount for contingencies or emergencies
- provision for increase, addition, or advance
- the amount by which something is higher or lower: to win by a wide margin
- Business, Finance
- the difference between the cost and the selling price of goods produced, sold, etc.
- money or collateral deposited with a broker or other lender, either to meet legal requirements or to insure against loss on contracts, as to buy stocks or commodities which have been financed with funds provided by the lender
- a customer's equity if his or her account is closed at the prevailing prices
- the difference between the face value of a loan and the market value of the collateral put up to secure it
- Econ. the minimum return, below which activities are not profitable enough to be continued
- Psychol. the fringe of consciousness
Origin: Middle English margine ; from Classical Latin margo (gen. marginis): see mark
- to provide with a margin or border; be a margin to; border
- to enter, place, or summarize in the margin of a page or sheet
- Business, Finance
- ☆ to deposit a margin upon
- to hold by depositing or adding to a margin upon
- to purchase (securities) on margin
Origin: L marginare
margin definition by American Heritage Dictionary
- An edge and the area immediately adjacent to it; a border. See Synonyms at border.
- The blank space bordering the written or printed area on a page.
- A limit in a condition or process, beyond or below which something is no longer possible or acceptable: the margin of reality; has crossed the margin of civilized behavior.
- An amount allowed beyond what is needed: a small margin of safety. See Synonyms at room.
- A measure, quantity, or degree of difference: a margin of 500 votes.
- Economics a. The minimum return that an enterprise may earn and still pay for itself.b. The difference between the cost and the selling price of securities or commodities.c. The difference between the market value of collateral and the face value of a loan.
- An amount in money, or represented by securities, deposited by a customer with a broker as a provision against loss on transactions made on account.
- Botany The border of a leaf.
- To provide with a margin.
- To be a margin to; border.
- To inscribe or enter in the margin of a page.
- Economics a. To add margin to: margin up a brokerage account.b. To deposit margin for: margin a transaction.c. To buy or hold (securities) by depositing or adding to a margin.
Origin: Middle English, from Old French, from Latin margō, margin-; see merg- in Indo-European roots.
- marˈgined adjective
margin - Business Definition
- 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.
- The difference between the payment received for a good or service and the cost of producing it. A product that is sold for $4.00 and costs $2.75 to produce has a margin of $1.25.
- Points added to an index in determining the rate of interest on an adjustable-rate mortgage loan.
margin - Computer Definition
margin - Investment & Finance Definition
The amount of money (or the value of assets) deposited by a customer to a broker in order to qualify for a loan to trade securities, or for a margin loan. Similar to collateral, margin may also be deposited by a broker with a clearing member of a futures exchange. If conditions become volatile in the futures market, margin requirements are raised. A clearing member of a futures exchange is also required to pay margin to the clearinghouse.
A margin is not a partial payment on a purchase. At the end of each trading day, profits and losses on open positions are calculated (using the mark-to-market process). If an investor has lost money and his or her margin account is therefore below minimum balance requirements, the broker makes a margin call to inform the investor that he or she needs to deposit additional funds in the account. The Securities and Exchange Commission regulates margins charged on investment accounts used to purchase stocks, bonds, and other financial instruments.
margin - Legal Definition
- The difference between the amount of a loan and the market value of the collateral securing it.
- Cash or other collateral given or paid to a stockbroker to secure him or her against losses incurred extending credit to an investor.
- The investor’s equity in stocks purchased by a broker extending credit to the investor.
margin - Medical Definition
- 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.