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Margin

The amount of money or securities that an investor must deposit with a broker to secure a loan from the broker. Brokers may lend money to investors for use in trading securities. To procure such a loan, an investor must deposit cash with the broker. The cash represents the equity, or margin, in the investor's account.

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Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
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http://www.personal.psu.edu/sjh11/OptionGlossary/Margin.shtml
was last updated on Wed, Oct 7, 2009.
Today is Thu, Nov 26, 2009.

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