Variation margin: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Add links.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 18: | Line 18: | ||
== See also == | == See also == | ||
* [[Collateralized to market]] | * [[Collateralized to market]] | ||
* [[Default]] | |||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
* [[Futures]] | * [[Forward contract]] | ||
* [[Futures contract]] | |||
* [[Initial margin]] | * [[Initial margin]] | ||
* [[Margin]] | * [[Margin]] | ||
Latest revision as of 15:37, 4 August 2022
(VM).
1.
In futures markets, a potentially refundable amount payable by a 'losing' market participant, to protect other participants in the market against the risk of a default.
If the market price were subsequently to change in favour of the participant, the variation margin would be refunded.
2.
Similar amounts payable in relation to other derivative instruments.
Variation margin is also sometimes known as 'maintenance margin'.
