Margin: meaning, definitions and examples

This term refers to the difference between the cost of a product or service and its selling price. It's a general term and could refer to profit margin, gross margin, or net margin depending on the context.

• The margin on these products has been steadily increasing.
• We need to improve our margin to stay competitive.

A broad term that can refer to either gross margin or net margin, often used in general discussions about profitability.

• The company aims to increase its profit margin in the next fiscal year.
• Improving profit margins often means either increasing sales or reducing costs.

Used in financial contexts to represent the total sales revenue minus the cost of goods sold (COGS), divided by the total sales revenue, often expressed as a percentage. This term gives you an idea of how well a company is managing its production costs.

• The company reported a gross margin of 40% last quarter.
• Our gross margin suggests we are efficient in our manufacturing process.

Refers to the percentage of revenue left after all expenses have been deducted from total sales, also known as net profit margin. This shows the overall profitability of a company after all costs are considered.

• Despite high revenues, our net margin is quite low due to rising operating costs.
• The net margin is a critical factor that investors look at.

Used when referring to the blank space around the content on a page or a boundary of an area. Common in typography, documents, and contexts where space is considered.

• The text was perfectly aligned with a one-inch margin on each side
• Please adjust the margins in your essay

Applies when discussing the dividing line or the boundary between countries, areas, or distinct sections. Often used in geographical, political, and design contexts.

• The border between the two countries was heavily guarded
• She decorated the card with a floral border

Refers to the outermost limit or the sharp part of an object. Commonly used when talking about physical objects or areas.

• He stood at the edge of the cliff, looking down at the ocean
• Be careful with that knife; it has a sharp edge

Describes the continuous line forming the boundary of a closed geometric figure. Often used in mathematical, security, and spatial contexts.

• The soldiers secured the perimeter of the base
• To find the perimeter of the rectangle, add up all the sides

This term is commonly used in finance and investing to describe the money that a client needs to deposit with a broker to cover potential losses. It is also used to denote the difference between the cost of a product and its selling price, or the edge/space in documents or printed text.

• He needed to maintain a margin in his trading account to continue trading on leverage.
• The profit margin on each unit is quite slim.

Used in a variety of contexts to mean making something safe or obtaining something. In finance, it specifically means providing an asset as collateral for a loan.

• He needed to secure the area before the VIP arrived.
• They managed to secure funding for their new project.

Generically used in various contexts to assure that something will happen or that certain conditions will be fulfilled. It can also be found in legal and financial contexts to describe a formal promise or assurance typically backed by a third party.

• The product comes with a two-year guarantee against defects.
• She offered to guarantee the loan for her friend's start-up.

Used when a borrower pledges an asset as security for a loan to reduce the risk for the lender. This term is primarily used in financial and banking contexts.

• The company decided to collateralize its office building to secure the loan.
• By collateralizing their receivables, they obtained better loan terms.