Margin

{
  "id": "MLC-T-LAW-005383",
  "term": "Margin",
  "field": "Law",
  "definition": "The funds borrowed from a broker to purchase securities, representing the difference between the total value of the investment and the amount of capital supplied by the investor. Buying on margin increases an investor's purchasing power and potential returns, but also magnifies potential losses if the security's value declines. The Federal Reserve Board's Regulation T sets the initial margin requirement, which is 50% of the purchase price for most stocks.",
  "url": "https://mlchart.com/terminology/law/margin/"
}