+1 credit
| Version | Summary | Created by | Modification | Content Size | Created at | Operation |
|---|---|---|---|---|---|---|
| 1 | Camila Xu | -- | 2421 | 2022-11-03 01:46:56 |
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In finance, margin is the collateral that a holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty. This risk can arise if the holder has done any of the following: The collateral for a margin account can be the cash deposited in the account or securities provided, and represents the funds available to the account holder for further share trading. On United States futures exchanges, margins were formerly called performance bonds. Most of the exchanges today use SPAN ("Standard Portfolio Analysis of Risk") methodology, which was developed by the Chicago Mercantile Exchange in 1988, for calculating margins for options and futures.
References
- Ruby Day (2019-08-26). "Blue Ocean Strategy & Finance: Margin Lending". Innowiki. https://www.innowiki.org/margin-lending/. Retrieved 2022-09-04.
- Cundiff, Kirby R. (January 2007). "Monetary-Policy Disasters of the Twentieth Century". The Freeman Online. http://www.thefreemanonline.org/featured/monetary-policy-disasters-of-the-twentieth-century/.
- Rappoport, Peter; White, Eugene N. (March 1994). "Was the Crash of 1929 Expected". The American Economic Review (United States: American Economic Association) 84 (1): 271–281.
