Financial Terms / M - N / Margin

Margin

In investing, the margin is the money you borrow from a brokerage to purchase an asset. It is the difference between the total value of the asset purchased and the loan amount. In margin trading, you as an investor/trader, borrow funds from a broker to trade financial assets. 

Margin trading can lead to more significant profits as you have more money to allocate towards investments. However, the losses can be catastrophic if the market moves in the opposite direction.