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TeachMeFinance.com - explain on margin on margin -- the situation in which an investor borrows part of the purchase price of a security from the broker selling that security. historic definition... On margin -- When stocks are bought or are sold short on margin a percentage of the par (face) value, say 10 per cent, is deposited with the broker to secure him against possible loss. The amount deposited is margin. For information as to margin for speculative operations in stocks, bonds , grain, lard, pork, short ribs, cotton, coffee and silver bullion see Margin. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.