Variation margin: Difference between revisions
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imported>Doug Williamson (Expand.) |
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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. | ||
Variation margin is also sometimes known as 'maintenance margin'. | |||
Revision as of 13:51, 19 July 2016
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.
Variation margin is also sometimes known as 'maintenance margin'.
