September 14th, 2007, 6:52 pm
Margin lending is a relatively basic component of the financial market. If you've ever borrowed money from a broker to finance a stock purchase, or used leverage to purchase options, then you have utilized margin lending. Don't let the term confuse you. Margin is just another way of saying "borrowing." If you trade on margin, then you are borrowing the cash from your broker to finance the position. As for how it involves client portfolio management, the two only intersect if the client needs to borrow money from his asset manager to purchase or maintain his positions. Otherwise, the two have little to do with one another.