Margin: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson (Amend Futures markets to broaden to Derivatives markets.) |
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Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default. | Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default. | ||
Revision as of 15:34, 4 November 2013
1.
Accounting.
Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.
2.
Bank lending.
Lending margin is a percentage amount added to a market reference rate, to calculate the total rate of interest payable by a borrower.
3.
Derivatives markets.
Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default.
