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Margin loan

Margin loan Definition

Margin loan means loan from a broker to a client that allows the customer to buy shares on credit. The margin is the difference between the market value of the shares purchased and the amount borrowed from the brokerage. The securities owned by the client are used as collateral for the loan. Interest on the loan is calculated on the outstanding balance on a daily basis and charged to the margin account.

RELATED TERMS
Margin
Margin Debt




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