What is Margin: Definition and 52 Discussions

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:

Borrowed cash from the counterparty to buy financial instruments,
Borrowed financial instruments to sell them short,
Entered into a derivative contract.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.

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    Neutral Point and Static Margin?

    Hiya I'm revising for an Aerospace Dynamics Exam... I've hunted high and low for a couple of quick definitions but can't find any! How do i define the neutral point and the static margin of a wing? Any help/suggestions of where to look gratefully recieved! Thanks Phiska
  2. C

    Finding error margin when one term is 0

    In our labs we often need to find the error percent between the expected value and the measured value. So if we expected to get a value of 9.8 m/s2 for g but got 9.9 m/s2 instead, we say that the error was (9.9 - 9.8)/9.8 % = 1.02%. But what happens if we expect a value of 0 for something, and...
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