margin interest


An interest rate applied to a loan or margin extended by a broker. When an investor wishes to make a purchase that is in excess of the cash in hand, a brokerage firm will automatically provide access to additional capital. An interest rate will be applied to this extension of a loan, which compensates the brokerage firm for access to the capital.

Use margin interest in a sentence

You need to try and make sure that you calculate any margin interest in to what you owe for the long term.

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The margin interest was particularly important for us to pay attention to and I reminded all of our workers just that.

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People often forget to take margin interest into account when considering purchasing stocks "on loan", and thus underestimate the true cost of leverage.

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Margin Department gross yield