MARGIN

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Definitions

1. the difference between the cost and the selling price of something, especially stocks or securities.

2. an excess of supplies, money, time, etc., kept or allowed for in case of an emergency or because the amount of what will be needed or used cannot be accurately calculated.

3. the amount a customer pays when he uses his broker's credit to buy commodities, securities, etc. Over the last twenty years Federal Reserve regulations in the US have varied the margin price at anywhere from fifty to a hundred per cent of the purchase price.

4. margin also represents the amount of equity in terms of securities, commodities, etc., a person has in his account if it were to be closed out at current prices.