# Collateral

*Borrowing & Credit — Finicade finance glossary*

An asset pledged to back a loan or trade, which the lender can seize if you don't pay. It lowers their risk — and so your rate — and is the backbone of repo and margin lending.

**Also known as:** security for a loan, pledged asset

**Related terms:** [Margin](https://finicade.com/glossary/margin), [Repo (Repurchase Agreement)](https://finicade.com/glossary/repo), [Secured vs Unsecured Loan](https://finicade.com/glossary/secured-vs-unsecured-loan)

Source: https://finicade.com/glossary/collateral