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To be contrasted with [[variation margin]], [[initial margin]] (in the ISDA troposphere known as an {{csaprov|Independent Amount}}) is the amount of [[margin]] you hold ''in excess of'' current [[mark-to-market]] [[exposure]]. You hold it to cover the risk that the market moves suddenly | To be contrasted with [[variation margin]], [[initial margin]] (in the ISDA troposphere known as an “{{csaprov|Independent Amount}}”) is the amount of [[margin]] you hold ''in excess of'' current [[mark-to-market]] [[exposure]]. You hold it to cover the risk that the market moves suddenly against your [[counterparty]] at the same time as it implodes, all before you have a chance to make a further [[variation margin]] call. <br> | ||