Margin

The term 'margin' encompasses several related meanings, all revolving around the concept of a boundary, allowance, or difference. It commonly refers to the blank space bordering the printed or written area on a page, providing room for notes or binding. More broadly, 'margin' denotes a limit or edge, often indicating a safety zone or degree of flexibility. In financial contexts, 'margin' signifies the difference between the cost of a product or service and its selling price, representing profit. Furthermore, it can refer to a security deposit paid to cover potential losses in a transaction, particularly in trading.

Margin meaning with examples

• Please ensure you leave a generous margin on each side of the document so the text isn't cut off during printing; we need at least one inch on all sides for readability.
• The election was unexpectedly close; the victor won by a slim margin of just a few hundred votes, making recounts necessary to confirm the result.
• The company operates on very thin margins in this highly competitive market, so even a small increase in costs could drastically impact their profitability for the quarter.
• When trading on margin, investors leverage borrowed funds, potentially amplifying both profits and losses, so understanding the risks is very crucial for financial management.