Profit Margin Calculator
The term "margin" has several financial meanings, including the difference between price and cost, and the use of borrowed funds for trading.
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Read MoreProfit margin indicates how much money remains from sales after subtracting costs, usually expressed as a percentage. A higher profit margin means more efficient operations and profitability.
Profit margin helps reveal a company's financial health and operating efficiency, allowing comparison with industry peers.
Margin trading involves borrowing money from brokers to increase investment size. This amplifies gains but also risk, with regulations setting minimum deposit and maintenance requirements to manage risk.
In currency exchange, margin is the collateral needed to open and maintain trading positions, varying with the leverage ratio.
Understanding different kinds of margin is crucial for businesses and investors to manage profits and risks effectively.