Buying a security on margin occurs when you borrow money to buy a security. The amount you borrow is also referred to as a "debit balance." See Margin Call.
Margin
Difference between the buying and selling rates, also used to indicate the discount or premium between spot or forward. For options the sum required as collateral from the writer of an option. For futures a deposit made to the clearing house on establishing a futures position account. The percentage reserve required by the US Federal Reserve to make an initial credit transaction. The percentage reserve required by the US Federal Reserve to make an initial credit transaction
Margin
In stock trading, an account in which purchase of stock may be financed with borrowed money; in futures trading, the deposit placed with the clearinghouse to assure fulfillment of the contract. This amount varies daily and is settled in cash.
Margin
The amount a client pays for a security purchase in a credit (or margin) account with a broker/dealer. Initial margins on purchases are set by the Federal Reserve Board. Minimum margin maintenance amounts are set by the exchanges.
Margin
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.
Margin
The set percentage the lender adds to the index rate to determine the current interest rate of an ARM.
Margin
Using money borrowed from a broker/dealer to buy securities (buying on margin). Whether a stock can be bought on margin depends on the FED.
