Definition and meaning The word ‘margin’ has several meanings, both in the world of business and finance, as well as other situations. It can refer to the difference between the cost of a product and how much you sell it for. It can also mean the amount by which revenue from total s...
(market volatility is also a factor). For example, January 2024 CME Group WTI Crude Oil futures required initial margin of $12,342, or roughly 17% of the total contract value. The contract was trading around $72 per barrel in mid-December 2023, meaning one futures contract covering 1,000...
A margin call is triggered when the value of an investor’s margin account falls below the broker’s required amount. This can happen when the value of the securities in the margin account declines, causing the equity in the account to fall below the required margin level. The margin level ...
MeaningThe margin is the percentage of profit earned on total sales. It is calculated as sales minus the cost of goods sold and is the proportion of income earned over sales.Markup is the amount the product cost increases to derive a selling price. ...
meaning the price changes dramatically. These higher margin requirements mean it can only take a tiny drop in the stock price before the investor has to put up more cash. Note that the precise effects depends on how much money the investor puts up in the first place compared with how much...
Margin has a different meaning for securities versus commodities. For securities, margin is the amount of cash a client borrows. For commodities, margin is the amount of cash a client must put up as collateral to support a futures contract. ...