What is Collateral?
Properties or assets that are offered to secure a loan or other credit. Collateral becomes subject to seizure on default. Read more for examples and further explanation including related video clips and also comments
Example explains Collateral
Collateral is a form of security to the lender in case the borrower fails to pay back the loan.
For example, if you get a mortgage, your collateral would be your house. In margin trading, the securities in your account act as collateral in the case of a margin call.
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