Margin and Trend: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Expand. Source: Global supply chain finance forum.)
 
imported>Doug Williamson
(Expand for bubbles, crashes and rational expectations.)
 
Line 1: Line 1:
1.  
Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).


''Accounting''.
Extended trends lead to bubbles and crashes.
 
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.
 
 
5.
 
''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 ==
* [[Collateral]]
* [[Adaptive expectations]]
* [[Futures]]
* [[Bubble]]
* [[Haircut]]
* [[Correction]]
* [[Initial margin]]
* [[Crash]]
* [[Maintenance margin]]
* [[Efficient market hypothsis]]
* [[Margin risk]]
* [[Mean reversion]]
* [[Stepped margin]]
* [[Overshooting]]
* [[Tax sparing]]
* [[Random walk]]
* [[Variation margin]]
* [[Rational expectations]]
* [[WGMR]]
* [[Trend analysis]]

Revision as of 09:09, 2 May 2018

Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).

Extended trends lead to bubbles and crashes.


See also