Home » Investment Terms Dictionary » Buying On Margin

Definition Of Buying On Margin:

Purchasing an asset by making a down payment (called the margin) and financing the balance amount through a loan by using the asset as the collateral (such as in a mortgage loan).
In securities trading, only a down payment is required because the value of the securities themselves (which remain in the possession of the broker or seller) fully collateralizes the unpaid amount.

Other Definition Of Investment Terms:

Calculated Intangible Value (civ)
Calendar Effect
Call Clause
Call Privilege
Called Bond
Called Up Share Capital

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