Margin

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.

See also

• Futures
• Initial margin
• Maintenance margin
• Tax sparing
• Variation margin