Margin
1. Accounting
Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.
2. Banking
Net interest margin (NIM).
3. Bank lending
Lending margin is a percentage amount added to a market reference rate, to calculate the total rate of interest payable by a borrower.
4. Derivatives markets
Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default.
5. Financing
An amount built in to an interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
6. Secured lending
An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
Also known as a 'haircut'.
