Variation margin: Difference between revisions
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* [[Initial margin]] | * [[Initial margin]] | ||
* [[Margin]] | * [[Margin]] | ||
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Revision as of 13:53, 19 July 2016
In futures markets, a potentially refundable amount payable by a 'losing' market participant, to protect other participants in the market against the risk of a default.
If the market price were subsequently to change in favour of the participant, the variation margin would be refunded.
Variation margin is also sometimes known as 'maintenance margin'.
