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margin account

margin account

1 7.2
An account at a broker that lets you borrow money to buy stocks using those stocks as security
  • noun
  • /ˈmɑrdʒɪn əˈkaʊnt/
  • Specialized
translation icon : cuenta de margen
  • To invest in certain stocks, you need to open a margin account with at least $2,000 as collateral.
  • collateral in a margin account

Examples

  • Japanese exporters and margin accounts reportedly sold into the dollar's gains the BOJ engineered.

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  • So this right here tells us the debit balances in customer securities margin accounts in English.

  • Now I throw in my margin account and I double what I wanted to buy.

  • Every day they look at your margin account and they adjust it.

  • When opening this type of contract, the futures exchange will give the minimum amount of money that must be deposited into your margin account.

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  • Now the trader who made money will see more money flowing into their account at the end of the day as the margin accounts are rebalanced.

  • (A side story to this bit of reality: I heard a report that Chesapeake drew down $1.2 billion of its credit line shortly after the bad PR of its CEO having his stock called on his margin account.

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  • The amount of money in your margin account fluctuates daily as the market fluctuates, but if your account drops below this maintenance margin amount, then brokers are required to make a margin call.

    Blog text (29)
  • If you're a really good trader, you only need 30k with a margin account. You can easily make 100 a day, which is 500 a week, 26k before taxes a year, still above minimum wage. And 200 or so a day becomes double that. If you suck, you won't care in a year and be broke. Lol.

    Blog text (17)
  • A margin account allows an investor to borrow money from a broker to purchase additional securities.

Antonyms

cash account
  • Specialized
1 4.4

An account at a broker where you must pay in full for stock purchases

How Leveraged

margin account
  • Specialized
1 7.2
cash account
  • Specialized
1 4.4

Surface Forms

Morphology

margin + account

The compound is compositionally built from 'margin' + 'account' so learners can infer it is an account related to 'margin' (trading on credit). However, the full sense — that the broker lends money and uses securities as collateral — requires specific financial knowledge beyond basic vocabulary, so the meaning is only partially predictable to a B1 learner.

Etymology

Margin account comes from the words margin and account, where margin meant the 'edge' or small 'extra' written in money records. Brokers used that extra as a 'safety' when they let people 'borrow' to buy shares, so a margin account is an account where you borrow money to buy investments and the broker keeps your shares as protection.