margin interest

Definition

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.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

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

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

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

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Related Terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Margin Department gross yield