margin debt

plural margin debts

1. countableuncountablebusinessMoney borrowed to purchase securities, using existing cash or securities as collateral.

   Avoid borrowing to invest: margin debt is what is getting many of those Chinese speculators into so much trouble, and making the rout in Chinese markets even worse than it might otherwise be, as forced selling pushes markets even lower.

   2015 July 9, Suzanne McGee, “Fear and uncertainty on Wall Street: investors, buckle up for a bumpy ride”, in The Guardian, →ISSN

   1 more example

   With what’s commonly called margin debt, an investor buys $100 worth of stock by borrowing $50 from the broker, for example. Only $50 is the investor’s initial equity investment. If the stock price climbs to $120, the investor’s return is 40% because the $20 of profit came on $50 of investment. So margin debt amplifies returns.

   2025 September 18, Jacob Sonenshine, “Margin Debt Has Soared. It’s the Skunk at Wall Street’s Garden Party.”, in MSN