Margin ....

Margin - a term that is often heard in the following sectors: banking, trading, stock exchange, as well as insurance. This concept refers to a specific indicator for the price difference for the commodity.

In this case we are talking about the goods on the stock exchange. As for the difference in the price level, which are offered in the sale and purchase. Based on this definition, it is clear that the difference between the buying and selling of valuable points to the profit that can be obtained with the transaction. The transaction is carried out with respect to the auction of a certain category of products.

When talking about the concept of the margin in different sectors of activity, under that one can understand not only the difference of the price, but also other aspects. These include interest rates, for example. In addition, it may be noted further course on the sale of securities, as well as currency. This list can be further continued.

Making a profit in the market is impossible without special allowance for the cost. That margin acts as such allowances, which gives an opportunity to get some profit bidders.