Variation margin

Variation Margin
Investment Dictionary:
Variation Margin
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Variation Margin
Funds required to be deposited by a client when a price movement has caused funds to fall below the stipulated percentage of the value of the contract.
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Variation Margin - it is the additional funds that must be deposited by broker as a result of negative price movements.
Volatility (Vol) - it is a mathematical measure of a price movements over time.

Generally, a variation margin is not required when the underlying assets associated with a given option are considered to be stable.

Variation margin
Additional funds required to maintain the cover provided by the initial margin when there has been an adverse price movement on the market.
Related terms:
Initial deposit/margin ...

Variation Margin
Payment made in order to restore or maintain initial margin on adverse positions resulting from price movements in futures/options transactions undertaken.
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Variation Margin: 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, ...

Variation Margin - The margin necessary to fully cover any losses by a trader. Variation margin is required to bring the account back up to the initial margin requirements.

Variation Margin
Profits or losses on open positions in futures and options contracts which are paid or collected daily.
Vega
Expresses the price change of an option for a one per cent change in the implied volatility.

Variation margin
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.

Variation Margin - 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.

Variation Margin - An additional margin requirement that a broker will need from a client due to market fluctuation.

Variation Margin - Additional money that must be deposited to bring an account back up to its initial margin. Read more about Variation Margin.

Variation Margin - A call by a broker to increase the margin requirement of a forex account during a period of extreme market volatility.

Variation Margin - 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.

Variation Margin
The minimum funds required by an FX brokerage firm to support an open position.
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Variation Margin
Additional margin deposited by a clearing member firm to an exchange clearing house during periods of great market volatility or in the case of high-risk accounts.
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Variation margin is applied to positions if they move against a client.

The variation margin stands for additional margin that is required to position an account at a proper lever with regard to the market fluctuations.

variation margin An additional margin payment that is made by clearing members to their respective... VAT Value Added Tax. A consumption tax that is equal to the aggregate value added to the product at each stage of production.

variation margin, (VM), this is the mark-to-market value of the futures transaction you have. If you have a profit VM will be positive, if you have a loss it will be negative. Variation margin exists to reduce counterparty credit exposure.

Because a series of adverse price changes may exhaust the initial margin, a further margin, usually called variation margin, is called by the exchange. This is calculated by the futures contract, i.e.

The use of cash generated by positive variation margins on a futures position to increase the size of the position, each reinvestment in successively smaller increments ...

Maintenance or Variation margin must be added to initial to maintain against losses on open positions. Sometimes herein the amount that needs to be present to establish or thereafter maintained is sometimes herein referred to as necessary margin.

Call: (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels; (2) a request by the clearing organization to a clearing member to make a deposit of original margin, or a daily or intra-day variation margin ...

A shorthand method of referring to the payment of a loss (pay) and receipt of a gain (collect) by a clearing member to or from a clearing organization that occurs after a futures position has been marked-to-market. See Variation Margin.

See also: Margin, Market, Contract, Trading, Option