margin lending


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.

Use margin lending in a sentence

There was some margin lending going on and there was some lending institutions that were allowing an individual to borrow money.

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James Hulton got the large sum of $10,000 from margin lending in order to invest some money in his blossoming bee keeping business.

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The brokerage was cautious about margin lending to customers, but the seasoned investor's portfolio success was more than enough to convince them that he could handle the risks.

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