Asked by wholemelt

The term “on margin” means

paying the balance in full for an asset with no down payment.
paying a high-interest rate on a bank or broker loan for an asset.
paying the down payment on an asset and borrowing the balance.
paying a loan back for an asset only after profiting from a trade.

All Answers 1

Answered by GPT-5 mini AI
paying the down payment on an asset and borrowing the balance.

Explanation: "Buying on margin" means you fund part of the purchase (the margin) and borrow the remainder (usually from a broker), using the asset as collateral.