Define: Margin

UK Accounting Glossary

Definition: Margin

Quick Summary of Margin

Profit, seen as the ‘margin’ between revenue and expense.

What is the dictionary definition of Margin?

Dictionary Definition

1. Banking: (1) The difference between the market value of collateral and amount of the loan advanced against it. Also called haircut. (2) The percentage added to a market rate of interest or subtracted from a market rate of deposit, to provide a return to the bank.
2. Commerce: Difference between the cost price and selling price of a product.
3. Commodity trading: Difference between the spot price and forward price quoted for a commodity.
4. Currency trading: Difference between the spot price and forward price quoted for a currency.
5. Futures trading: Security deposit that buyers and sellers must place with the clearinghouse to guaranty they will perform as agreed (to make or take the delivery) on or before the futures contract’s expiration date.
6. Securities trading: Difference between the amount of loan advanced by a stockbroker to a speculator and the current value of the securities deposited by him or her with the stockbroker as collateral.


1. typography The edge of the paper that remains blank.
2. The edge or border of any flat surface.
3. figuratively The edge defining inclusion in or exclusion from of a set or group.


Full Definition of Margin

The percentage of the selling price that will be profit, generally calculated as percentages. It helps measure how much the company keeps in earnings. For example, a 30% profit margin means the company has a net income of £0.30 for each pound of total revenue earned.


Margin FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Margin. Payroll & Accounting Heaven Ltd. November 17, 2019
Chicago Manual of Style (CMS):
Margin. Payroll & Accounting Heaven Ltd. (accessed: November 17, 2019).
American Psychological Association (APA):
Margin. Retrieved November 17, 2019, from website:

Definition Sources

Definitions for Margin are sourced/syndicated from:

This glossary post was last updated: 23rd December 2018.