A type of brokerage account that allows investors to buy securities with borrowed funds, requiring a deposit of cash or assets as collateral to cover the risk on such transactions.
he had a margin account which let him borrow up to half the cost of the stock he wanted
Example sentencesExamples
Unlike short-selling, you don't need a margin account, and you won't owe lenders any interest.
If there were a swing of only 13.75% in the value of the dollar against the Yen then the whole of the margin account would have been wiped out.
Their margin account required a cash deposit of $75,000.
If there is a change in the market value of the securities in your margin account, we may require additional Collateral.
This strategy involves selling borrowed bonds in a margin account in the hope that their prices will fall.
Definition of margin account in US English:
margin account
noun
Finance
A type of brokerage account which allows investors to purchase securities with borrowed funds, requiring a deposit of cash or assets as collateral to cover the risk on such transactions.
he had a margin account which let him borrow up to half the cost of the stock he wanted
Example sentencesExamples
Their margin account required a cash deposit of $75,000.
If there is a change in the market value of the securities in your margin account, we may require additional Collateral.
If there were a swing of only 13.75% in the value of the dollar against the Yen then the whole of the margin account would have been wiped out.
This strategy involves selling borrowed bonds in a margin account in the hope that their prices will fall.
Unlike short-selling, you don't need a margin account, and you won't owe lenders any interest.