Margin and Trend: Difference between pages

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imported>Doug Williamson
(Update 4th definition.)
 
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 margins measure the surplus of revenues over relevant costs, often expressed as a percentage.
Extended trends lead to bubbles and crashes.
 
Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.
 
 
Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.
 
Gross profit measured as a percentage of costs is also sometimes known as ''markup'', an amount added to costs to determine a selling price.
 
 
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 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'.
 
 
7.  ''Project planning and management.''
 
A ''safety margin'' is an allowance for worsening of a key input or variable in a project.
 
 
8.
 
Any other difference, usually a relatively small difference compared with the amounts themselves being compared.
 
For example, forward margin in foreign exchange markets.




== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[Adaptive expectations]]
* [[Bank margin]]
* [[Bubble]]
* [[Collateral]]
* [[Correction]]
* [[EMIR]]
* [[Crash]]
* [[Exchange traded]]
* [[Efficient market hypothsis]]
* [[Forward margin]]
* [[Mean reversion]]
* [[Futures]]
* [[Overshooting]]
* [[Haircut]]
* [[Random walk]]
* [[Initial margin]]
* [[Rational expectations]]
* [[Maintenance margin]]
* [[Trend analysis]]
* [[Margin call]]
* [[Margin compression]]
* [[Margin of safety]]
* [[Margin on costs]]
* [[Margin risk]]
* [[Marginal]]
* [[Margining]]
* [[Markup]]
* [[Net profit margin]]
* [[NII]]
* [[NIM]]
* [[Over the counter]]
* [[Profit margin]]
* [[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