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Performance bond

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Definition
Performance bond
A type of surety bond where the surety company guarantees the contractor will fulfill the contract in accordance with its terms.
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Performance bond call - A demand for additional funds to bring the customer's account back up to the initial performance bond level whenever adverse price movement has caused the account to go below the maintenance.

Performance Bond: See Margin.
Physical : A contract or derivative that provides for the physical delivery of a commodity rather than cash settlement. See Financial.

Performance Bond
A bond issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract.
Performance Index Paper - PIP ...

Performance Bond (Previously referred to as Margin)
Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member, or by a clearing member, with the Clearing House.

Performance bond
A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled.

Performance Bond Margin - The amount of money deposited by both buyer and seller of a futures contract or an options seller to ensure performance of the term of the contract.

Performance Bond: Previously referred to as margin, these are funds that must be deposited as a performance bond by a customer with his or her broker.

performance bond
Performance Equity-Linked Redemption Quarterly-Pay SecuritiesSM (PERQSSM)
performance fee ...

Initial Performance Bond
The funds required when a futures position (or a short options on futures position) is opened.
Injunction ...

Margin is a performance bond that insures against trading losses. Margin requirements in the FX marketplace allow you to hold positions much larger than the asset value of your account.

performance bond A bond issued by an insurance firm to guarantee satisfactory completion of a project by a contractor.

The full value of the contract is not transferred to your performance bond account.

Before they will complete the deal, they first will ask for an upfront "security deposit" or "margin payment" - or claim that you must post an "insurance" or "performance bond.

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One Dam Big Performance Bond: The Construction Of The Hoover Dam ...

The performance bond (margin) requirements for most futures contracts range from 2% to 15% of the value of the contract with a majority in the 5% area. Margin for single-stock futures is set at 20% of the contract value.

Collateral payments (performance bond) to the clearing and settlement agent for futures and forward contracts. See risk-based margin, variation margining.
Deutsch: Margin
Margin classes ...

Margin requirement
A performance bond paid upon purchase of a futures contract that protects the exchange clearinghouse from loss.

NASDAQ-100 futures (ticker: ND) contract's minimum tick is .25 index points = $25.00[8] While the performance bond requirements vary from broker to broker, the CME requires $17,500, and continuing equity of $14,000 to maintain the position.[6] ...

A performance bond margin is monies deposited by both buyer and sells of commodity futures contracts to guarantee performance of the contract. This is essentially a security deposit.

To use leverage, a trader must have a margin account, which requires placing a performance bond (or a "good faith" deposit) with the brokerage firm.

Clearing House - An adjunct to the CME responsible for settling trading accounts, clearing trades, collecting and maintaining performance bond funds, regulating delivery and reporting trading data.

(10 to 15% in most situations) as margin, yet they are exposed to the full change in any value of the contract held. In fact, the money the trader is putting up is not used to purchase a part of the contract; it is to act as a performance bond.

See also: Performance, Bond, Market, Future, Contract