Margin

The margin, in a financial sense, has various different meanings.

Usually it refers to the difference between the cost of an asset and what you can sell it for.

For instance if you can buy an item for £10 each and sell for £15, then you have a margin on that item of a very healthy £5, or 50%.

Margin can also refer to the proportion of an asset pledged as security, or in terms such as net interest mortgage and a premium added on a mortgage.

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