Margin: Difference between revisions
imported>Doug Williamson (Expand. Source: Global supply chain finance forum.) |
imported>Doug Williamson (Differentiate 3rd & 5th definitions.) |
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1. | 1. ''Accounting.'' | ||
Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage. | |||
Profit margin is usually expressed as a percentage of revenues, for example in the Net profit margin. | |||
Less commonly, margin can also be expressed as a margin (percentage) on relevant costs. | |||
2. ''Banking.'' | |||
Net interest margin (NIM). | |||
3. ''Bank lending.'' | |||
Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower. | |||
''Derivatives markets'' | 4. ''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. | Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default. | ||
5. ''Financing.'' | |||
An amount implicitly built in to a total interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider. | |||
6. ''Secured lending.'' | |||
An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset. | |||
Also known as a 'haircut'. | |||
== See also == | == See also == | ||
* [[Alternate Base Rate]] | |||
* [[Collateral]] | * [[Collateral]] | ||
* [[EMIR]] | |||
* [[Exchange traded]] | |||
* [[Futures]] | * [[Futures]] | ||
* [[Haircut]] | * [[Haircut]] | ||
* [[Initial margin]] | * [[Initial margin]] | ||
* [[Maintenance margin]] | * [[Maintenance margin]] | ||
* [[Margin call]] | |||
* [[Margin compression]] | |||
* [[Margin on costs]] | |||
* [[Margin risk]] | * [[Margin risk]] | ||
* [[Margining]] | |||
* [[Markup]] | |||
* [[Net profit margin]] | |||
* [[NII]] | |||
* [[NIM]] | |||
* [[Over the counter]] | |||
* [[Stepped margin]] | * [[Stepped margin]] | ||
* [[Sustainability Linked Loan Principles]] | |||
* [[Tax sparing]] | * [[Tax sparing]] | ||
* [[Variation margin]] | * [[Variation margin]] | ||
* [[WGMR]] | * [[WGMR]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 16:43, 2 August 2020
1. Accounting.
Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.
Profit margin is usually expressed as a percentage of revenues, for example in the Net profit margin.
Less commonly, margin can also be expressed as a margin (percentage) on relevant costs.
2. Banking.
Net interest margin (NIM).
3. Bank lending.
Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower.
4. 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.
5. Financing.
An amount implicitly built in to a total interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
6. Secured lending.
An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
Also known as a 'haircut'.
See also
- Alternate Base Rate
- Collateral
- EMIR
- Exchange traded
- Futures
- Haircut
- Initial margin
- Maintenance margin
- Margin call
- Margin compression
- Margin on costs
- Margin risk
- Margining
- Markup
- Net profit margin
- NII
- NIM
- Over the counter
- Stepped margin
- Sustainability Linked Loan Principles
- Tax sparing
- Variation margin
- WGMR
