What is'margin'?

What is 'Margin'. In a general business context, the margin is the difference between a product or service's selling price and the cost of production. Margin can also refer to the portion of the interest rate on an adjustable-rate mortgage (ARM) added to the adjustment-index rate.

What is margin available?

Margin Available shows the amount of equity in an account that is not currently being used and is available for further increase of net exposure. In the case where Margin Available is zero, this indicates maximum leverage usage in the account. Margin Available = Equity – Used Margin *Used Margin = Net Exposure/Leverage

What is a margin margin a Marg Marg a'marg'' margins?

Margin accounts allow investors to borrow money against the value of the securities in their account. If you give the brokerage firm permission, shares held in a cash account can also be lent out to other interested parties, including short sellers and hedge funds.

What is margin trading and how does it work?

How does margin work? Brokerage customers who sign a margin agreement can generally borrow up to 50% of the purchase price of new marginable investments (the exact amount varies depending on the investment). As we'll see below, that means an investor who uses margin could theoretically buy double the amount of stocks than if they'd used cash only.