Finance · Margin Trading
In securities trading, what does the term 'margin' refer to?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The total amount of net profit earned by a broker on a single trade
- 2The amount paid by the customer in cash when utilizing a broker's credit to buy or sell a security✓
- 3The difference between the bid price and the ask price in an order book
- 4The percentage fee charged by the exchange for overnight clearing of transactions
Correct answer
The amount paid by the customer in cash when utilizing a broker's credit to buy or sell a security
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