The term "on margin" means

paying the balance in full for an asset with no down payment.
paying a high-interest rate on a bank or broker loan for an asset.
paying the down payment on an asset and borrowing the balance.
paying a loan back for an asset only after profiting from a trade.

The term “on margin” means paying a high-interest of rate on a bank or broker loan for an asset.

When you do not have resources to buy additional shares, one option is to borrow money from your broker in order to buy on margin that means to purchase stock. The money borrowed is deposited in a margin account. It is basically a loan. Previously, the investor needs to authorize the broker with a signature in order to proceed with the loan to buy stock. So it is correct to say that the term “on margin” means paying a high-interest of rate on a bank or broker loan for an asset.

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