Variation margin

Variation margin
An additional required deposit to bring an investor's equity account up to the initial margin level when the balance falls below the maintenance margin requirement. The New York Times Financial Glossary

* * *

   Variation margin is collected on a daily basis by clearing houses or brokers to ensure margin requirements on a particular transaction keep pace with subsequent market movements. It represents a running profit or loss on a contract. It is calculated by revaluing all positions with reference to the closing prices each day.
   ► See also Margin, Mark to Market.

Financial and business terms. 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • 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

  • Variation Margin — A variable margin payment that is made by clearing members to their respective clearing houses based upon adverse price movements of the futures contracts that these members hold. Variation margin is paid by clearing members on a daily or… …   Investment dictionary

  • Variation Margin — ⇡ Margin …   Lexikon der Economics

  • variation margin call — A margin call from the clearinghouse to a clearing member. These margin calls are issued when the clearing member s margin has been reduced substantially by unfavorable price moves. The variation margin call must be met within one hour. The… …   Financial and business terms

  • Variation margin —   The variable sum of money depending on the market value of the outstanding contract which must be deposited in order to maintain the protection to both parties trading in options/futures. See also Initial margin …   International financial encyclopaedia

  • margin payment — Under Title 11 U.S.C. Section 101: (38) The term margin payment means, for purposes of the forward contract provisions of this title, payment or deposit of cash, a security or other property, that is commonly known in the forward contract trade… …   Glossary of Bankruptcy

  • 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 — This allows investors to buy securities by borrowing money from a broker. The margin is the difference between the market value of a stock and the loan a broker makes. Related: security deposit ( initial). The New York Times Financial Glossary *… …   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

  • margin call — A call from a clearinghouse to a clearing member, or from a brokerage firm to a customer, to bring margin deposits up to a required minimum level. Chicago Board of Trade glossary A call from the clearinghouse to a clearing member ( variation… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”