From MarketsWiki
Revision as of 12:31, 8 January 2014 by RyanLothian (Talk | contribs)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Collateral refers to properties or assets offered to secure a loan or other credit. Assets can be seized by the lender upon default of a loan by the borrower. For example, the collateral for a mortgage is the house.

In trading, the securities in your account act as collateral in the case of a margin call.