| Margin |
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The use of borrowed money to purchase securities, referred to as "buying
on margin". It is amount of equity contributed by a customer as a
percentage (currently a maximum of 50%) of the current market value
of the securities held in a margin account.
In business it also refers to the difference between selling price
and the cost of goods sold. |
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Basically
it is investing with a specified amount of borrowed money like 50%.
This is extremely risky, you can either double your gains or double
your losses...experienced investors only!
The use of margin will usually be subject to interest payment for
using the borrowed money. |
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