The explanation of "margin" is called "margin"?

The explanation of “margin” is called “margin”?

What is the origin of the name "margin"?

"Margin" is a transliteration from English margin. Margin is generally interpreted as "side, edge, edge, limit, limit, difference, range", etc. For example, when typing, we will set margin first.

In the field of accounting, it is usually interpreted as "profit, interest rate", such as profit margin.

In the business world, margin should be understood as "margin" or "deposit". When investors make a transaction, they must first pay a certain amount of margin or deposit to obtain ownership of the transaction object. This kind of behavior helps people who are good at investing make more effective use of the limited funds they have.

The narrow definition of margin in the financial world arises from the broad definition of margin, especially when conducting leveraged trading. Investors only need to first hand over a sum of funds that can withstand the risk (the difference between the rise and fall of the price). You can participate in transactions that magnify a certain multiple, such as foreign currencies, securities, futures, etc.

Therefore, margin has the following meanings:

1. Profitable trading transactions in the form of margin, deposit, or deposit,

2 . You only need to bear the risk of the buying and selling difference,

3. Maximize the limited funds on hand more effectively.

Note: For those who are not good at investing, margin trading is like. Everyone should understand the risks they can bear.

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