( stocks)
A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock; if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated , but margin requirements and interest may vary among broker-dealers. Bloomberg Financial Dictionary
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An account enabling an investor to trade without having the full amount of funds available.
► See also Margin, Margin Trading.
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margin account UK US noun [C]
► FINANCE, STOCK MARKET an account that holds a client's assets for a broker as the margin that protects the broker from loss
Financial and business terms. 2012.