Margin is:
A) that part of the total value of a security transaction that the broker has to pay to initiate the transaction.
B) that part of the total value of a security transaction that a customer has to pay to initiate the transaction.
C) that part of the value of a security transactions that a customer has borrower from a third party.
D) that part of the value of a security transaction for which a commercial bank has provided a guarantee.

Question

Quizplus · Accepted Answer

Margin in the context of securities trading refers to the portion of the total value of a transaction that a customer must deposit with a broker to initiate a trade. This deposit serves as collateral for borrowing the remainder of the funds needed to complete the purchase.

Margin Is