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margin lending

Definition
A program though lending institutions that allows an individual to borrow money for the purposes of investing it. The amount of credit loaned is based upon the amount of assets held by the borrower, which are pledged as collateral on the loan. This program is often used by individuals who want to invest more than they currently are investing, and are willing to take on the risk of this type of loan.



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margin lending is in the Lending & Credit subject.


Related terms

financial leverage

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