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Finance Dictionary and Glossary of Investment Terms
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Definition 1.
In lending, the difference between the value of a loan and the value of the collateral securing that loan. Or more generally, a term used for any of a wide variety of spreads and margins.
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Definition 2.
1. The difference between prices at which a market maker can buy and sell a security. 2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin, and collateral levels.
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Definition 3.
The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction).
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