margin rate definition
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Margin Rate Margin Rate. Margin rate has multiple financial meanings. The margin rate is the interest charged by a broker or agent for buying securities on margin (purchasing securities with borrowed money). The margin rate is a fee above and beyond a broker's call rate. A margin rate can vary and is dependent on a margin customer's account balance.
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Contribution margin Contribution margin. In cost-volume-profit analysis, a form of management accounting, contribution margin—the marginal profit per unit sale—is a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. Typically, low contribution margins are prevalent in the labor-intensive tertiary sector while high contribution margins are prevalent in the capital-intensive industrial sector.
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Margin of safety (financial) Margin of safety (financial) Margin of safety (safety margin) is the difference between the intrinsic value of a stock and its market price. Another definition: In Break even analysis (accounting), margin of safety is how much output or sales level can fall before a business reaches its breakeven point. 1 History.
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What is a 'Bank Rate' Loading the player... A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is method by which central banks affect economic activity.
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What is a 'Margin' To margin means to use borrowed money to purchase securities. What Does Margin Mean in Investing? To margin, also called buying on margin, refers to the practice of buying an asset where the buyer pays only a percentage of the asset's value and borrows the rest from the bank or broker.
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The Definition of Retail Margin The retail margin equals the difference between the price that you pay for an item and the price at which you sell the the item to customers. For example, if you have to pay your retailers $15 for each sweater and you then sell it to customers for $39, your retail margin equals $24. You can also calculate your retail margin across all of your sales by subtracting your total costs of goods sold from your total sales revenues.
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- bank base rate. Definition. noun. a basic rate of interest, on which the actual rate a bank charges on loans to its customers is calculated. Also calledbase rate. Use bank base rate in a sentence. “ You should always shop around to make sure that you are getting the best bank base rate that you can.
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- Markup. A markup is what percentage of the cost price do you add on to get the selling price. These are different, a selling price with a margin of 25% results in more profit than a selling price with a markup of 25%.In a merchant situation it is probably better to work with margins.ith margins, a 50% margin means that half the selling price is profit. In markups, that is a 100% markup (you have added 100% of the cost price to make the selling price). With margins, a 100% margin is only possible if the cost price is zero.
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Profit Margin In general, it is defined as the ratio of profits earned to total sales receipts (or costs) over some defined period. The profit margin is a measure of the amount of profit accruing to a firm from the sale of a product or service.
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What Is Gross Margin? A company's margins are a measurement of how effectively the company turns its revenue into profit. Gross margin reflects how much of its sales a company hangs on to after paying the up-front costs of producing the goods or services it sells. It's calculated by dividing gross profit divided by total revenue and expressed as a percentage.
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- A call loan rate is an interest charged on loans made to broker-dealers who use the funds to make margin loans to their margin account clients. These loans are payable by the broker-dealer on call (i.e. on demand or immediately) upon receiving such request from the lending institution.
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- DEFINITION of 'Gross Margin'. A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by a company.EFINITION of 'Gross Margin'. A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.
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Margins in Business, Finance, and Investing Definition, Meaning Explained, Example Calculations Margin in business. As a general term in business and commerce, the term margin refers to the difference between selling price and the seller's costs for the goods or services being sold, expressed as a percentage of selling price.
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Margin A Margin is a procedure allowing investors to borrow against their existing holdings to buy more securities. Usually the loan value is 100% of the account value. Thus the margin requirement, the amount needed in the account to keep it open is 50% of the value. In other words one can buy $20,000 worth of stock for $10,000.
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Gross Margin to Net Margin Gross Margin Basics. In general, a margin ratio is a measure of efficiency in converting revenue dollars into profits. Gross margin compares your gross profits the revenue generated during a given period of time. Gross profit equals revenue minus cost of goods sold. A gross profit of $50,000 on revenue of $150,000 is 0.33 or 33 percent.
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Profit Margin The profit margin is a measure of the amount of profit accruing to a firm from the sale of a product or service. It also provides an indication of efficiency in that it captures the amount of surplus generated per unit of the product or service sold.ividing the dollar amount of earnings by the product cost, that firm's profit margin would be .10 or 10 percent, meaning that each dollar of sales generated an average of ten cents of profit.
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Margin: How Does It Work? As with any loan, when you buy securities on margin you have to pay back the money you borrow plus interest, which varies by brokerage firm and the amount of the loan. Margin interest rates are typically lower than credit cards and unsecured personal loans.
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- Deposit Rate Meaning: In deposit terminology, a term Deposit Rate refers to the amount of money paid out in interest by a bank or financial institution on cash deposits. Banks pay deposit rates on savings and other investment accounts.
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profit margin Define profit margin: the difference between the cost of buying or making something and the price at which it is sold — profit margin in a sentence the difference between the cost of buying or making something and the price at which it is sold…
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- In deposit terminology, a term Deposit Rate refers to the amount of money paid out in interest by a bank or financial institution on cash deposits. Banks pay deposit rates on savings and other investment accounts.
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- Base Rate. 1  Base Rate is the minimum interest rate at which a bank can lend except for loans to its own employees, its retired employees and against bank’s own deposits. 2  All floating and fixed rate loans sanctioned by banks before 1st April, 2016 were priced using base rate as benchmark.
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- Glossary > Forex > customer margin. customer margin. A method of creating an assurance on the part of both buyers and sellers of futures contracts that all contract obligations will be fulfilled. Customer margins are established individually based on the amount of risk Exposure and the size of the contract. Browse by Subjects.
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What Is a Mortgage Loan Margin? The margin on a mortgage loan is the percentage added after your lender examines your index 45 to 60 days prior to a scheduled interest rate adjustment specified in your loan note. Margins vary based on the mortgage loan product and your credit score. A margin of 2 percent is much better than a margin of 6 percent. Interest rates can fluctuate up or down based on current market conditions, but smaller margins are always beneficial to you, regardless of the state of the U.S. economy.
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What is a 'Margin' What is a 'Margin'. Margin is the difference between a product or service's selling price and its cost of production or to the ratio between a company's revenues and expenses. It also refers to the amount of equity contributed by an investor as a percentage of the current market value of securities held in a margin account. Margin is the portion of the interest rate on an adjustable-rate mortgage added to the adjustment-index rate. Next Up.
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What is a 'Margin' To determine the new rate, the bank adds a margin to an established index. In most cases, the margin stays the same throughout the life of the loan, but the index rate changes. To illustrate, imagine a mortgage with an adjustable rate has a margin of 4% and is indexed to the Treasury Index.
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What is a 'Margin' To margin, also called buying on margin, refers to the practice of buying an asset where the buyer pays only a percentage of the asset's value and borrows the rest from the bank or broker. The broker acts as a lender, and he uses the funds in the securities account as collateral on the loan's balance.