Margin

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Revision as of 15:00, 27 April 2016 by imported>Doug Williamson (Expanded definition. Source: Standard definitions for techniques of supply chain finance report)
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1.

Accounting.

Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.


2.

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.


3.

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.


4.

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.


See also