During periods of great market volatility or in the case of high-risk accounts, additional margin deposited by a clearing member firm to an exchange.
The financial amount by which an account balance is adjusted daily to reflect gains or losses in open positions relative to the current market price.
The deposit/available credit needed on your account in order to keep your positions open taking into account the daily movement of the markets.
Payment made on a daily or intraday basis by a clearing member to the clearinghouse to cover losses created by adverse price movement in positions carried by the clearing member, calculated separately for customer and proprietary positions.
Funds required to be deposited by a Customer when a price movement has caused funds to fall below the minimum margin requirement. Conversely, funds may be withdrawn by a Customer when a price movement has caused funds to rise above the minimum margin requirement.
Additional margin required to be deposited by a clearing member firm to the clearinghouse during periods of great market volatility or in the case of high-risk accounts.
A request for additional funds (a margin call) to cover any losses on an open position, based on current market values. Variation margin is assessed and called for on a daily basis. An open position which is in profit against the current market has a positive margin, which can be used in assessing a client's credit position. On some cash cleared markets positive margin can be paid out to a client whose open position is in profit.
An additional margin requirement that a broker will need from a client due to market fluctuation.
The amount of money that is immediately due from you in the event that when holding open positions, your overall account position is a negative figure. The amount of variation margin due is equal to the amount of the negative figure combined with 25 percent of the total IM of your open positions at that time. Please refer to the GFT Global Markets UK Limited Customer Agreement for a comprehensive explanation.
Same as open P + L e.g. any running profit from an open position can be used as additional margin. Conversely, any running loss will need to be funded, especially if there is no stop loss in place
the margin on a derivatives contract whose value varies in line with levels of volatility in the market. The higher the fluctuations in daily prices, the higher the variation margin.
Funds, which are required to bring the equity in an account back up to the initial margin level, calculated on a day-to-day basis.
Profits or losses on open positions in spot FX which are paid or collected daily.
Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements. Volatility (Vol) - A statistical measure of a market’s price movements over time.
Additional funds to be deposited by a client when an adverse price movement has caused funds to fall below the brokers margin requirement, thus the designated position is not covered with the existing margin value.
An additional required deposit to bring an investor's equity account up to the initial margin level when the balance falls below the maintenance margin requirement.
Settlement via the clearinghouse of daily or intraday gains and losses between clearing member firms.
A variable margin payment that is made by clearing members to their respective clearing houses based upon adverse price movements of the futures contracts that these members hold.
A call by a broker to increase the margin requirement of an account during a period of extreme market volatility.
Profits or losses on open positions in futures and options contracts which are paid or collected daily.
Actual debits (losses) and credits (profits) arising from the mark-to-market process on open futures and options positions are posted as variation margin. In the event of a shortfall, as a result of an adverse price move, a call will be made on clearing members for additional funds to cover the realised loss. Conversely, realised profits may be called from the clearing house. See Margining.
Payment made on a daily or intraday basis by a clearing member to the clearing organization based on adverse price movement in positions carried by the clearing member, calculated separately for customer and proprietary positions.
