margin

1. Banking: (1) Difference between the market value of a collateral and amount of the loan advanced against it. Also called haircut. (2) Percentage added to a market rate of interest, or subtracted from a market rate of deposit, to provide a return to the bank.

2. Commerce: Difference between the cost price and selling price of a product.

3. Commodity trading: Difference between the spot price and forward price quoted for a commodity.

4. Currency trading: Difference between the spot price and forward price quoted for a currency.

5. Futures trading: Security deposit that buyers and sellers must place with the clearing house to guaranty they will perform as agreed (to make or take the delivery) on or before the futures contract's expiration date.

6. Securities trading: Difference between the amount of loan advanced by a stockbroker to a speculator and the current value of the securities deposited by him or her with the stockbroker as collateral.

Convincing customers to buy your products is tough enough without suppliers giving you a hard time. Basic rule of thumb: The fewer the number of suppliers, the more sway they have. Take the steel industry, which relies on a handful of companies for its iron feedstock. If two of those big guys should get together--as BHP Billton and Rio Tinto have been discussing--they would have significant pricing power, potentially crimping steel producers' margins. On the flipside, beware getting hooked on low-cost providers who don't keep an eye on quality. ("Lead-laced" Barbie, anyone?)

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