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Initial margin

The collateral posted against a position on the derivatives market.

When the metric lies

It grows with volatility, so the demand for more funds arrives at the worst moment by construction.

Also known as: initial margin, margin requirement

Related terms

Следующий шаг курса «Derivatives without illusions» · разборInitial margin: why a position can be closed without youCollateral against an obligation whose size moves with volatility. It is what decides when you get closed out.Читать дальше Предыдущий шаг: Futures: an obligation, not an option