noun
Finance term for the difference between buying and selling prices, or between cost and revenue.
この取引の利鞘はわずか2%だった。
The profit margin on this transaction was only 2%.
銀行は貸出金利と預金金利の利鞘で収益を上げる。
Banks earn revenue from the spread between lending and deposit rates.
Compound of 利 (り, 'profit') and 鞘 (さや, 'sheath' or 'margin'). The use of 鞘 for 'margin' comes from the idea of a sheath as a container for a blade, metaphorically representing the difference between two values.