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Template:Types of margin: Difference between revisions
→Initial margin and variation margin
Amwelladmin (talk | contribs) (Created page with "===Initial margin and variation margin=== Margin comes in two forms. *Variation margin, or VM, is collateral against the present mark-to-market value of t...") |
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===[[Initial margin]] and [[variation margin]]=== | ===[[Initial margin]] and [[variation margin]]=== | ||
Margin comes in two forms. | [[Margin]] comes in two forms. | ||
*[[Variation margin]], or [[VM]], is collateral against the present [[mark-to-market]] value of the transaction exposure. | *[[Variation margin]], or [[VM]], is collateral against the present [[mark-to-market]] value of the transaction exposure. | ||
**If you don’t have this and the counterparty goes bust, you’re whistling. | **If you don’t have this and the counterparty goes bust, you’re whistling. | ||