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.
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