Margin has several financial definitions.
1. The difference between selling price and the seller’s costs for the goods or services being sold. This is expressed as a percentage of selling price.
2. Financial Accountants refer to Margin as a comparison of a company’s percentage of sales revenues: gross, operating, and net profit margins.
3. For Investors, Margin means buying securities with a combination of the investor’s own funds and borrowed funds. If the stock price changes between its purchase and sale. Margin accounts are very popular with options traders because they can buy or sell more options than they actually have money to buy, by leveraging a brokers funds. Margin investing is very risky, be careful.
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