- initial margin (initial performance bond)
- The funds required when a futures position (or a short options on futures position) is opened. See "performance bond."
Financial and business terms. 2012.
initial margin (initial performance bond)
Look at other dictionaries:
initial performance bond — The minimum deposit a clearing firm must require from customers for each contract, when an account is new or when the account s equity falls below CME Clearing minimum maintenance requirements. The contract specifications indicate the amount of… … Financial and business terms
performance bond — A type of insurance purchased by a builder that protects both the bank and the owner by providing that the insurance company will be responsible for completing construction if the contractor fails to do so. American Banker Glossary A surety bond… … Financial and business terms
maintenance margin (performance bond) — A sum, usually smaller than the initial performance bond, which must remain on deposit in the customer s account for any position. A drop in funds below this level requires a deposit back to initial margin levels. See performance bond call … Financial and business terms
maintenance performance bond — The minimum equity that must be maintained for each contract in a customer s account subsequent to deposit of the initial performance bond. If the equity drops below this level, a deposit must be made to bring the account back to the initial… … Financial and business terms
initial margin — The amount a futures market participant must deposit into his margin account at the time he places an order to buy or sell a futures contract. Also referred to as original margin. Chicago Board of Trade glossary When a customer establishes a… … Financial and business terms
member performance bond — The minimum equity that must be maintained for each contract in a member s account subsequent to deposit of the initial margin. Also see MEMBER RATE. Chicago Mercantile Exchange Glossary … Financial and business terms
margin — the difference between the selling price and the purchase price of an item usually expressed as a percentage of the selling price. Compare mark up. Glossary of Business Terms Financial safeguards to ensure that clearing members (usually companies … Financial and business terms
Margin (finance) — For the 2011 film, see Margin Call. In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their broker or an exchange). This risk can… … Wikipedia
maintenance margin — The minimum level at which the equity in a futures account must be maintained. If the equity in an account falls below this level, a margin call will be issued, and funds must be added to bring the account back to the initial margin level. The… … Financial and business terms
Futures contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
