Variation margin

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Revision as of 13:51, 19 July 2016 by imported>Doug Williamson (Expand.)
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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'.


See also