Financial and business terms. 2012.
margin requirement — A performance bond paid upon purchase of a futures contract that protects the exchange clearinghouse from loss. Bloomberg Financial Dictionary ( options) The amount of cash an uncovered ( naked) option writer is required to deposit … Financial and business terms
Options Clearing Corporation — Industry clearing Founded 1973 Headquarters Chicago, IL … Wikipedia
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
Option Margin — The cash or securities an investor must deposit in his account as collateral before writing options. Margin requirements vary by option type. Margin requirements are established by the Federal Reserve Board in Regulation T; individual brokers may … Investment dictionary
Portfolio Margin — The modern composite margin requirements that must be maintained in a derivatives account containing options and/or futures contracts. Portfolio margin accounting requires a margin position that is equal to the remaining liability that exists… … Investment dictionary
variation margin — During periods of great market volatility or in the case of high risk accounts, additional margin deposited by a clearing member firm to an exchange. Chicago Board of Trade glossary margin, gross margin, net margin, security margin, variation… … Financial and business terms
delta based margin — A margining system which used to be used on the LME to calculate initial margins on sold options. The initial margin of a future on the same underlying was multiplied by the option s delta to obtain the initial margin requirement on the option.… … Financial and business terms
option margin — The margin requirement for options described in Regulation T and in brokers individual policies. Bloomberg Financial Dictionary … Financial and business terms
Contract for difference — In finance, a contract for difference (or CFD) is a contract between two parties, typically described as buyer and seller , stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at… … Wikipedia
Futures contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
