Template:Initialmargindescription: Difference between revisions
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Amwelladmin (talk | contribs) Created page with "To be contrasted with variation margin, initial margin (in the ISDA troposphere known as an {{csaprov|Independent Amount}} is an amount of margin you hold in excess of..." |
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To be contrasted with [[variation margin]], [[initial margin]] (in the ISDA troposphere known as an {{csaprov|Independent Amount}} is | 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, and your [[counterparty]] implodes, dramatically, before you have a chance to make a further [[variation margin]] call. <br> | ||
Revision as of 04:24, 31 December 2019
To be contrasted with variation margin, initial margin (in the ISDA troposphere known as an 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, and your counterparty implodes, dramatically, before you have a chance to make a further variation margin call.