What is Margin ?

Margin based on the idea of borrowing, but borrowing differs from the margin system in terms of procedures and quality guarantees required to provide such facilities, For example, in the normal borrowing when you want to borrow $ 100.000, requires you to provide mortgage guarantees, and such actions almost normal because the bank does not have the ability to control the risk of collecting the amount borrowed. While in margin system does not require more than $ 1000 for example, to obtain credit facilities amounting to $ 100.000, in the presence of a regime governing the collection of the loan, and the idea that the deposit with the bank accounted for 1% of the loan value in the case of loss the bank collected deposit amount, here there is no problem with the bank that borrowing you to 400 times the amount deposited, because the loan has come to resemble Free of risk for the bank. But in the capital market the borrowing process differs through term called Contract or Lot, which is used as a measurement standard means the quantity of money, this contract contains money available to borrow, so you must borrowed an amount equivalent insurance, and in the event of loss, the money will discount from your 1000$.