Homonym: margin (Edge)
Margin refers to the difference between the cost of a product and its selling price. In business, it is often expressed as a percentage, indicating how much profit a company makes on each sale. For example, if a product costs manufacturing $50 and sells for $100, the margin is 50%. This helps businesses understand their profitability and make pricing decisions.
In finance, margin can also refer to the amount of money borrowed from a broker to purchase securities. This allows investors to buy more shares than they could with their own funds alone. However, trading on margin involves risks, as losses can exceed the initial investment.