Variation margin: Difference between revisions
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imported>Doug Williamson m (Spacing 14/8/13) |
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In futures markets, an amount payable by a 'losing' market participant, to protect other participants in the market against the risk of a default. | In futures markets, an 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. | If the market price were subsequently to change in favour of the participant, the variation margin would be refunded. | ||
== See also == | == See also == | ||
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* [[Initial margin]] | * [[Initial margin]] | ||
* [[Margin]] | * [[Margin]] | ||
Revision as of 10:29, 14 August 2013
In futures markets, an 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.
