What is Margin?

Margin is a concept frequently explored in investing / trading and it refers to borrowed money which is used to invest (a.k.a. investing on the margin). This is essentially leverage, and the investor may experience margin calls if the equity requirements (the amount they have to put up) increase on the asset or if their position starts losing a lot of money. As with leverage, investing on the margin amplifies return and loss, and also adds the cost of interest payments.

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