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.
In the financial world, the term “on margin” means "paying a high-interest rate on a bank or broker loan for an asset," since oftentimes investors want to invest with more funds than they have available.