Margin: Difference between revisions
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imported>Doug Williamson (Link with new Margin risk page.) |
imported>Doug Williamson (Expanded definition. Source: Standard definitions for techniques of supply chain finance report) |
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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. | ||
4. | |||
''Financing''. | |||
An amount built in to an interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider. | |||
Revision as of 15:00, 27 April 2016
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.
4.
Financing.
An amount built in to an interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
