trading
margin
Borrowed money used to purchase securities, or the difference between an investment's return and its cost.
Example
"He bought stocks on margin, amplifying his gains but also his potential losses."
💡 Memory Tip
Writing in the MARGIN of a page adds extra. Margin in investing means extra borrowed money added to your own.
Etymology
From Latin 'margo' meaning 'edge, border' — operating at the edge of your capital.
Common Misspellings
margenmarjinmargnmarginn
Related Terms
See Also
margin call