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It's not something I would use myself, but I think it's decent. I can imagine it on a young person as well as an older person. When I was in high school, I knew a Margy who was around my age (I'm 23 now). Before I met her, I probably wouldn't have liked the name, but I think it worked well for her. If I had to choose a nickname for Margaret, I'd probably pick Margo. I've always liked it.