Margin and Trend: Difference between pages

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imported>Doug Williamson
(Differentiate 3rd & 5th definitions.)
 
imported>Doug Williamson
(Expand for bubbles, crashes and rational expectations.)
 
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1. ''Accounting.''
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).


Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.
Extended trends lead to bubbles and crashes.
 
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 ==
== See also ==
* [[Alternate Base Rate]]
* [[Adaptive expectations]]
* [[Collateral]]
* [[Bubble]]
* [[EMIR]]
* [[Correction]]
* [[Exchange traded]]
* [[Crash]]
* [[Futures]]
* [[Efficient market hypothsis]]
* [[Haircut]]
* [[Mean reversion]]
* [[Initial margin]]
* [[Overshooting]]
* [[Maintenance margin]]
* [[Random walk]]
* [[Margin call]]
* [[Rational expectations]]
* [[Margin compression]]
* [[Trend analysis]]
* [[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]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

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