Initial margin methodology

Initial margin methodology

And as a result, as we all know these trades are quite complex and there’s a lot of variability in terms of how they’re priced, and on top of that if you add the variability that comes into the picture because of the margin model itself, and there are…

Initial margin on options

Initial margin on options

What is Options Margin? Margin in equity and index options trading is the amount of cash deposit needed in an options trading broker account when . Writing options means Shorting options and happens when Sell To Open orders are used on call or put options…

Futures initial margin

Futures initial margin

Futures represent an obligation either to buy or to sell the underlying asset at a specified date in the future. A margin is an amount that is calculated by ASX Clear, a wholly owned subsidiary of the ASX, as necessary to ensure that you can meet that…

Initial margin futures options

Initial margin futures options

For securities, the definition of margin includes three important concepts: the Margin Loan, the Margin Deposit and the Margin Requirement. The Margin Loan is the amount of money that an investor borrows from his broker to buy securities. The Margin Deposit…

Initial margin Dodd Frank Act

Initial margin Dodd Frank Act

Introduction to Dodd-Frank Derivative Market Reform The Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) was enacted to reduce systemic risk, increase transparency, and promote market integrity within the financial system. In particular…

Initial margin OTC

Initial margin OTC

Introduction On 2 September 2013, the Basel Committee on Banking Supervision (“BCBS”) and the International Organization of Securities Commissions (“IOSCO”) published their long-awaited final policy document dealing with “”. Scope Subject to certain exemptions…

Initial margin on Gold futures

Initial margin on Gold futures

The day many have predicted would come, has finally arrived: 100% initial margin on gold . In a dramatic flashback to the torrid days of 2011, when the CME and other exchanges desperately tried to scare away the weak hands by raising initial and maintenance…

Initial margin Rates and SPAN Parameters

Initial margin Rates and SPAN Parameters

Following on from the Beat the Experts thread, John Philpott posed some excellent questions on the differences between the Value at Risk (VaR) and Standard Portfolio Analysis of Risk (SPAN) market-risk measurement methods. His questions are highly on-topic…

TradeStation futures initial margin

TradeStation futures initial margin

For securities, the definition of margin includes three important concepts: the Margin Loan, the Margin Deposit and the Margin Requirement. The Margin Loan is the amount of money that an investor borrows from his broker to buy securities. The Margin Deposit…

LCH initial margin calculation swaps

LCH initial margin calculation swaps

Bloomberg have integrated the Initial Margin calculations from SwapClear into their trading platform. What this provides is: The ability to always know your current IM The ability to predict IM in varying market conditions The ability to calculate capital…

Emini futures initial margins

Emini futures initial margins

Margin is essentially a loan that a brokerage firm extends to a client (the trader or investor) that is used for the purchase of trading instruments. Margin trading allows traders and investors to enter larger positions then they would otherwise be able…

Initial margin for futures trading

Initial margin for futures trading

Margin (sometimes called performance bond) is the minimum amount of money required to be in your account with your broker to be able to trade a particular futures contract. This amount of money varies from market to market and differs if you are doing…

Initial margin requirements are determined by

Initial margin requirements are determined by

In a short sale transaction, the investor borrows shares and sells them on the market in the hope that the share price will decrease and he or she will be able to buy them back at a lower price. The proceeds of the sale are then deposited into the short…

CME initial margin model

CME initial margin model

CHICAGO, Nov. 5, 2011 /PRNewswire/ - CME Group today is clarifying its notice to clearing firms regarding margins. In light of the issues customers transferring out of MF Global are facing, while still maintaining appropriate risk management protections…

Initial margin of Gold

Initial margin of Gold

CME Group is lowering margins for gold and silver futures after of the close of business on Friday. The exchange operator sent out a notice late Thursday saying it was changing margins in some of the metals, along with coal, crude oil, electricity and…