Note that the buying power of a margin account changes daily depending on the price movement of the marginable securities in the account. To provide an edge or border, usually around a text. How to use marginal in a sentence. Rational people systematically and purposefully do the best they can to achieve their objectives, given the opportunities they have. The initial margin requirement is set by federal law and varies from product to product. An adjusted debit balance shows what a market participant would owe their brokerage in the case of a margin call. "Margin: How Does It Work?" 2. Economists can … 2. That’s where thinking on the margin comes in. The incremental margin is useful for analyzing financial information that affects decision making. Intensive margin refers to the degree (intensity) to which a resource is utilized or applied. This involves a comparison of the additional (or marginal) benefits and costs of an activity. A house call is a brokerage firm's demand that a customer cover a shortfall in the amount deposited to cover losses in purchases made on margin. "For an adjustable-rate mortgage (ARM), what are the index and margin, and how do they work?" Term price-cost margin Definition: The difference between price (p) and marginal cost (mc) as a fraction of price, that is [p-mc]/p.The price-cost margin is usually taken as an indicator of market power because the larger the margin, the larger the difference between price and marginal cost, that is, the larger the distance between the price and the competitive price. The verb ‘to margin’ means: 1. This deposit is known as the minimum margin. For example, marginal price is the price of buying one more, marginal labor output is how much an additional worker would produce, marginal propensity to save/spend refers to what percentage of a person’s additional income is saved/spent. For discussion of the term “margin” as used in the jargon of bourses, see “Margin (finance)”.. Economic principle: Rational people think at the margin. Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount. Marginal Benefit Basics A good marginal benefit definition and marginal benefit formula understands that the first unit of a … Accessed Aug. 15, 2020. Education General See Synonyms at border. This is the cost price. The interest charges are applied to your account unless you decide to make payments. It can also mean the amount by which revenue from … What it means, is essentially the next additional unit, product, person, or whatever else you're associating the term with. Market Value Margin versus Economic Capital Teus Mourik 1. Relating to the image above, the survey authors could say: ‘These are our findings, give or take 4%.’. A margin call is effectively a demand from your brokerage for you to add money to your account or close out positions to bring your account back to the required level. Consumer Financial Protection Bureau. Economists normally assume that people are rational. The longer you hold an investment, the greater the return that is needed to break even. Margin definition: A margin is the difference between two amounts, especially the difference in the number... | Meaning, pronunciation, translations and examples A limit in a condition or process, beyond or below which something is no longer possible or acceptable: the margin of reality; has crossed the margin of civilized behavior. In business accounting, margin refers to the difference between revenue and expenses, where businesses typically track their gross profit margins, operating margins, and net profit margins. You must have a margin account to do so, rather than a standard brokerage account. These include white papers, government data, original reporting, and interviews with industry experts. Buying on margin is borrowing money from a broker in order to purchase stock. Economic principle: Rational people think at the margin. The word ‘margin’ has several meanings, both in the world of business and finance, as well as other situations. It is defined as: "The cost that results from a one unit change in the production rate". Over time, your debt level increases as interest charges accrue against you. If it costs you $10 to produce or buy a pair of shoes, and you sell them for $20, then your margin is $10. Margin investing can be advantageous in cases where the investor anticipates earning a higher rate of return on the investment than what he is paying in interest on the loan.. Marginal: in economics, the term ‘marginal’ means the same as ‘by adding one more’ or ‘additional’. The mark-up added to the cost price usually equals retail price. Margin account. 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