Margin: Difference between revisions

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1. ''Accounting.''
1. ''Accounting.''


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


Profit margin is usually expressed as a percentage of revenues, for example in the Net profit margin.
Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.


Less commonly, margin can also be expressed as a margin (percentage) on relevant costs.
 
Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.
 
Gross profit measured as a percentage of costs is also sometimes known as ''markup'', an amount added to costs to determine a selling price.




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3. ''Bank lending.''  
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.
Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower.




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5. ''Financing.''
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.
An amount implicitly built in to a total interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.




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Also known as a 'haircut'.
Also known as a 'haircut'.
7.  ''Project planning and management.''
A ''safety margin'' is an allowance for worsening of a key input or variable in a project.
8.
Any other difference, usually a relatively small difference compared with the amounts themselves being compared.
For example, forward margin in foreign exchange markets.




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* [[EMIR]]
* [[EMIR]]
* [[Exchange traded]]
* [[Exchange traded]]
* [[Forward margin]]
* [[Futures]]
* [[Futures]]
* [[Haircut]]
* [[Haircut]]
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* [[Margin call]]
* [[Margin call]]
* [[Margin compression]]
* [[Margin compression]]
* [[Margin of safety]]
* [[Margin on costs]]
* [[Margin on costs]]
* [[Margin risk]]
* [[Margin risk]]

Revision as of 10:20, 26 August 2020

1. Accounting.

Profit margins measure the surplus of revenues over relevant costs, often expressed as a percentage.

Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.


Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.

Gross profit measured as a percentage of costs is also sometimes known as markup, an amount added to costs to determine a selling price.


2. Banking.

Net interest margin (NIM).


3. Bank lending.

Lending margin is a percentage amount added explicitly 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 implicitly built in to a total 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'.


7. Project planning and management.

A safety margin is an allowance for worsening of a key input or variable in a project.


8.

Any other difference, usually a relatively small difference compared with the amounts themselves being compared.

For example, forward margin in foreign exchange markets.


See also