MARGIN

MARGIN

margin, n.

1. A boundary or edge.

2. A measure or degree of difference.

3. PROFIT MARGIN.

4. The difference between a loan’s face value and the market value of the collateral that secures the loan.

5. Cash or collateral required to be paid to a securities broker by an investor to protect the broker against losses from securities bought on credit. [Cases: Securities Regulation 45.10, 45.11. C.J.S. Securities Regulation ¡ì 117.]

6. The amount of an investor’s equity in securities bought on credit through the broker. ¡ª margin, vb. ¡ª marginal, margined, adj.

good-faith margin. The amount of margin that a creditor exercising good judgment would customarily require for a specified security position. ? This amount is established without regard to the customer’s other assets or securities positions held with respect to unrelated transactions.


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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.