Margin refers to what?

Margin refers to the difference between the selling price of a product and its cost, often expressed as a percentage of the selling price. It represents the profitability of a product or service and is crucial for businesses to evaluate their financial health. Higher margins indicate more profit per sale, while lower margins may suggest competitive pricing or higher costs. In finance, margin can also refer to the amount of collateral required to open and maintain a leveraged trading position.