margin loan

Definition

A loan from a broker to a client that essentially functions as a margin account. The funds may be used for any purpose, and the loan is secured with securities owned by the client.

Use margin loan in a sentence

You should shop around and make sure you get a good rate before you agree to take on any margin loan.

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The margin loan the Zeke received was allowed to be used to expand his Chinese restaurants from one storefront to three.

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As a client, your loan is secured with security that is owned by the broker, which is called a margin loan. Your funds may be used for any purpose, and will function as a margin account.

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net capital ratio asset management account