margin account

noun

plural margin accounts
: a client's account with a brokerage firm through which the client may buy securities (see security sense 3) by borrowing part of the purchase price from the firm
… had a margin account … for four years, until 1980, when his investments went awry, and he owed the brokerage $17,000.Sherry R. Sontag

Examples of margin account in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Under the rule, traders who executed four or more day trades within five business days had to maintain a minimum equity of $25,000 in a margin account. Yun Li, CNBC, 23 Apr. 2026 Treasury bills are ordinarily held as secondary reserves by commercial banks and by other investors (e.g., margin accounts) as a means of temporarily employing excess funds. Colin Dodds, Encyclopedia Britannica, 11 Apr. 2026

Word History

First Known Use

1973, in the meaning defined above

Time Traveler
The first known use of margin account was in 1973

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Cite this Entry

“Margin account.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/margin%20account. Accessed 25 Apr. 2026.

Legal Definition

margin account

noun
: a client's account with a brokerage firm through which the client may buy securities on the firm's credit
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