margining
/ˈmɑrdʒɪnɪŋ/
noun
- The practice of buying securities or other assets with borrowed money, using the assets themselves as collateral.
- Margining allows investors to amplify their potential returns, but it also increases risk.
- During the market crash, many investors faced margin calls due to excessive margining.
- The broker explained the rules of margining before the client opened a margin account.
Synonyms
verb
- Present participle of margin; to provide or require a margin (deposit of collateral) for a financial transaction.
- The trader was margining heavily, which worried his financial advisor.
- The bank is margining the loan at 50% of the stock's value.
- He is margining his portfolio to take advantage of the low interest rates.