variation margin

Definition of "variation margin"
  1. Daily or intraday payment by a clearing member to a clearing organization due to unfavorable changes in the value of held positions, determined separately for a customer and the member's own positions
How to use "variation margin" in a sentence
  1. Due to the drop in stock prices, the firm had to pay a hefty variation margin.
  2. Variation margin payments can protect clearing organizations against potential losses.
  3. Underestimated variation margins can cause significant financial distress to clearing members.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z