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Margin (finance)

Index Margin (finance)

In finance, margin is collateral that the 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. [1]

51 relations: American Economic Association, Badla (stock trading), Broker, Broker's call, Brokerage firm, Central counterparty clearing, Chicago Mercantile Exchange, CME SPAN, Collar (finance), Collateral (finance), Collateral management, Commodity broker, Counterparty, Credit default swap, Credit risk, Derivative (finance), Domino effect, Exchange (organized market), Federal Reserve System, Finance, Financial instrument, Futures contract, Futures exchange, Great Depression, Interest, Jargon, Leverage (finance), Libor, Long (finance), Margin (finance), Mark-to-market accounting, MCI Inc., New York Stock Exchange, Option (finance), Performance bond, Portfolio margin, Put option, Repurchase agreement, Securities lending, Short (finance), Silver Thursday, Special memorandum account, Speculation, Spread trade, Stock, Stock market, Stock trader, Sweet crude oil, The American Economic Review, Wall Street Crash of 1929, ..., XVA. Expand index (1 more) »

American Economic Association

The American Economic Association (AEA) is a learned society in the field of economics, headquartered in Nashville, Tennessee.

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Badla (stock trading)

Badla was an indigenous carry-forward system invented on the Bombay Stock Exchange as a solution to the perpetual lack of liquidity in the secondary market.

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Broker

A broker is an individual person who arranges transactions between a buyer and a seller for a commission when the deal is executed.

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Broker's call

Broker's call, also known as the Call loan rate, is the interest rate relative to which margin loans are quoted.

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Brokerage firm

A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller.

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Central counterparty clearing

Central counterparty clearing (CCP), also referred to as a central counterparty, is a financial institution that takes on counterparty credit risk between parties to a transaction and provides clearing and settlement services for trades in foreign exchange, securities, options, and derivative contracts.

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Chicago Mercantile Exchange

The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is an American financial and commodity derivative exchange based in Chicago and located at 20 S. Wacker Drive.

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CME SPAN

The Standard Portfolio Analysis of Risk, or SPAN, is a system for calculating margin requirements for futures and options on futures.

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Collar (finance)

In finance, a collar is an option strategy that limits the range of possible positive or negative returns on an underlying to a specific range.

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Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

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Collateral management

Collateral has been used for hundreds of years to provide security against the possibility of payment default by the opposing party in a trade.

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Commodity broker

A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission.

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Counterparty

A counterparty (sometimes contraparty) is a legal entity, unincorporated entity, or collection of entities to which an exposure to financial risk might exist.

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Credit default swap

A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event.

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Credit risk

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments.

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Derivative (finance)

In finance, a derivative is a contract that derives its value from the performance of an underlying entity.

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Domino effect

A domino effect or chain reaction is the cumulative effect produced when one event sets off a chain of similar events.

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Exchange (organized market)

An exchange, or bourse also known as a trading exchange or trading venue, is an organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.

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Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America.

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Finance

Finance is a field that is concerned with the allocation (investment) of assets and liabilities (known as elements of the balance statement) over space and time, often under conditions of risk or uncertainty.

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Financial instrument

Financial instruments are monetary contracts between parties.

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Futures contract

In finance, a futures contract (more colloquially, futures) is a standardized forward contract, a legal agreement to buy or sell something at a predetermined price at a specified time in the future.

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Futures exchange

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.

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Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Jargon

Jargon is a type of language that is used in a particular context and may not be well understood outside that context.

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Leverage (finance)

In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is any technique involving the use of borrowed funds in the purchase of an asset, with the expectation that the after tax income from the asset and asset price appreciation will exceed the borrowing cost.

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Libor

The London Inter-bank Offered Rate is the average of interest rates estimated by each of the leading banks in London that it would be charged were it to borrow from other banks.

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Long (finance)

In finance, a long position in a financial instrument, means the holder of the position owns a positive amount of the instrument.

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Margin (finance)

In finance, margin is collateral that the 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.

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Mark-to-market accounting

Mark-to-market (MTM or M2M) or fair value accounting refers to accounting for the "fair value" of an asset or liability based on the current market price, or for similar assets and liabilities, or based on another objectively assessed "fair" value.

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MCI Inc.

MCI, Inc. (d/b/a Verizon Business) was an American telecommunication corporation, currently a subsidiary of Verizon Communications, with its main office in Ashburn, Virginia.

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New York Stock Exchange

The New York Stock Exchange (abbreviated as NYSE, and nicknamed "The Big Board"), is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York.

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Option (finance)

In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on a specified date, depending on the form of the option.

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Performance bond

A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.

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Portfolio margin

Portfolio margin is a risk-based margin policy available to qualifying US investors.

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Put option

In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

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Repurchase agreement

A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is a transaction concluded on a deal date tD between two parties A and B: If positive interest rates are assumed, the repurchase price PF can be expected to be greater than the original sale price PN.

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Securities lending

In finance, securities lending or stock lending refers to the lending of securities by one party to another.

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Short (finance)

In finance, a short sale (also known as a short, shorting, or going short) is the sale of an asset (securities or other financial instrument) that the seller does not own.

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Silver Thursday

Silver Thursday was an event that occurred in the United States in the silver commodity markets on Thursday, March 27, 1980, following the Hunt brothers' attempt at cornering the silver market.

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Special memorandum account

Special memorandum account (SMA) is a margin credit account used for calculating US Regulation T requirements on brokerage accounts.

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Speculation

Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable at a future date.

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Spread trade

In finance, a spread trade (also known as relative value trade) is the simultaneous purchase of one security and sale of a related security, called legs, as a unit.

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Stock

The stock (also capital stock) of a corporation is constituted of the equity stock of its owners.

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Stock market

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately.

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Stock trader

A stock trader or equity trader or share trader is a person or company involved in trading equity securities.

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Sweet crude oil

Sweet crude oil is a type of petroleum.

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The American Economic Review

The American Economic Review is a peer-reviewed academic journal of economics.

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Wall Street Crash of 1929

The Wall Street Crash of 1929, also known as Black Tuesday (October 29), the Great Crash, or the Stock Market Crash of 1929, began on October 24, 1929 ("Black Thursday"), and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.

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XVA

An X-Value Adjustment (XVA, xVA) is a generic term referring collectively to a number of different “Valuation Adjustments” in relation to derivative instruments held by banks.

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References

[1] https://en.wikipedia.org/wiki/Margin_(finance)

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