Template:M summ 1995 CSA Independent Amount

Revision as of 13:10, 4 June 2020 by Amwelladmin (talk | contribs)

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 against your counterparty at the same time as it implodes, all before you have a chance to make a further variation margin call.