Glossary of Option Terms: Margin
Margin
Definition: In order to purchase securities, some investors will borrow money; this is referred to as buying on margin.
This practice is very risky as both losses and gains are augmented, the potential for greater gain exists, but so does the same potential of greater losses. Margin can also put the investor in line of a few distinctive risks such as interest payments for using the borrowed amount of money.
Related Articles:
- Margin - How to Turn a 10% Bump Into a 50% Jump
Related Terms:
|
