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Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (e.g., production or acquisition costs, not including indirect fixed costs like office expenses, rent, or administrative costs), then divided by the same selling price.
Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated.
In finance, margin is the collateral that a holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty. This risk can arise if the holder has done any of the following:
How to calculate your profit margins. To find out your gross profit margin, you’ll first need to calculate the gross profit.
How margin trading works. Buying on margin involves getting a loan from your brokerage and using the money from the loan to invest in more securities than you can buy with your available cash...
Portfolio margin is calculated using the Options Clearing Corporation's (OCC) Customer Portfolio Margin system. This system—based on the OCC's TIMS methodology—sets the margin requirement to the maximum hypothetical loss of the portfolio.
The Standard Portfolio Analysis of Risk, or SPAN, is a system for calculating margin requirements for futures and options on futures. It was developed by the Chicago Mercantile Exchange in 1988. SPAN is a portfolio margining method that uses grid simulation.
A financial calculator or business calculator is an electronic calculator that performs financial functions commonly needed in business and commerce communities [1] (simple interest, compound interest, cash flow, amortization, conversion, cost/sell/margin, etc.). It has standalone keys for many financial calculations and functions, making such ...
In business, operating margin—also known as operating income margin, operating profit margin, EBIT margin and return on sales (ROS)—is the ratio of operating income ("operating profit" in the UK) to net sales, usually expressed in percent.
Within economics, margin is a concept used to describe the current level of consumption or production of a good or service. [1] Margin also encompasses various concepts within economics, denoted as marginal concepts, which are used to explain the specific change in the quantity of goods and services produced and consumed.