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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1. MHB Point Estimate, Margin of Error and Confidence Level

1. One of the few negative effects of quitting smoking is weight gain. The data below shows the weight gain (in pounds) of 18 respondents 12 months after they quit. If the mean gain follows a normal distribution with a standard deviation of 9 pounds, estimate the mean weight gain of the 18...
2. B Implicit error margins based on significant figures

WARNING: Topic is very pedantic. I have used a set of different physics books over the years, and they have all had a focus on the topic of significant figures, error margins and measurement. I have never quite understood these concepts fully and the relationships between them. One aspect I...
3. I Need clarification on the margin of error in two different cases

I need this in simple terms. Here's what I think I know so far (assuming 95% confidence level): MOE from a sample proportion is 2√(p(1-p)/n) and I think this is assuming the sample proportion is close to the population proportion. But then there is a sampling distribution of sample proportions...
4. Calculate the margin of error in this physics lab

Bounce 1, Trial 1-4: ha (height after bounce) (0.74+0.67+0.69+0.73)/4=0,7075 this is my mean value. Standard Deviation, s: 0.033040379335998 (calculated the value using an online standard deviation calculator) Sample size N: 4 sx̄ = s/√N = 0.033040379335998/√4≈ 0.0165 At a 95% confidence...
5. What is the Safest Rule of Thumb for Designing with a Safety Margin?

As a general rule of thumb what do you guys think is an ideal minimum safety margin when designing something? I know that this is a very broad question and could vary depending on the situation (ie something on a static load may need a smaller margin than dynamic) and since I do not have a...
6. MHB Customer's 10K Piece Profit Margin: 28.8%

customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?

25. MHB Met Office mean average temperatures and margin of error

I have been debating with a few other people on another board, regarding the correct way to calculate the mean average of a list of values, where those values are recorded temperatures. A great many people seem to believe, for example, that if each temperature reading is accurate to +/- 0.5°...
26. Size sample required to construct a 95% C.I. with margin of error

N = 8 Mean = 2.10 stDev = 0.537 What size sample is required to construct a 95% confidence interval with a margin of error of 0.3? try n = 12, t(.975) with 11 deg. of freedom = 2.2001 so n = ( (.537* 2.2001) / (.3))^2 = 15.5 try n = 14, i get n = 14.95 n = 15, n = 14.74 Why is this a...
27. Largest achieveable phase margin

My question is: With a controller gain that meets the condition on the ramp set point, what is the largest achievable phase margin? I have no idea what the solution is saying! Does anyone know what this means exactly??
28. MHB Fixing Picture Placement Below Margin

This picture is on a blank piece of paper but is rendered 2in below the margin. Why is this happening? I want it to be at the top of page right below the margin. The $z$ node is causing the problem. If I remove the $z$ node, the picture moves back to the top. What can I do about this...
29. Control cable failure and critical flutter speed margin?

Hi everyone here! I'm a LSA and PPL pilot, working on my CPL, and I have some questions to those who have knowledge of the aeroelastic effects and flutter phenomenon. I would like to talk a little about aerodynamic flutter onset speed and flight control malfunction. It is known that freeplay...
30. Determining margin off error within experimental calculations

For a physics project, a few friends and I got ahold of a couple of balls that would record the time of an impact. Using this, we wanted to calculate g using kinematics to see how off we would be from the expected 9.81 m/s^2. Obviously, differences in altitude, air resistance, and experimental...
31. Use Linear Approximation to Find Margin of Error

Homework Statement For x near 0, local linearization gives the following equation. e^x ≈ 1 + x Estimate to one decimal place the magnitude of the error for −1 ≤ x ≤ 1. Homework Equations The Attempt at a Solution I'm no exactly sure what to do here to be honest, but what I thought I'd...
32. Margin of error for standard deviation

Hello, I am trying to calculate what the margin of error for the standard deviation would be if each data point has a margin of error E. The standard deviation (for 3 data points) is defined as σ = \sqrt{\frac{(x_{1}-μ)^{2}+(x_{2}-μ)^{2}+(x_{3}-μ)^{2}}{3}} Where μ =...
33. Transfer function from Gain Margin and Phase Margin

Would it be possible to get the Transfer Function of a System if Open Loop Gain Margin and Phase Margin are known.
34. Margin of error in a t-distribution

This is not a homework problem. I am working on an experiment and I need to know how many samples (n) I need to achieve a margin of error (e) below 2%. Looking through a statistics textbook they provide a calculation for e using z-distributions, but not t-distributions. Replacing...
35. MATLAB Optimizing Gain Margin in Matlab Bode Diagram

For the Matlab bode diagram, normally when we want to obtain the gain margin, we have to cross the line from phase -180 and touch the curve. (Picture1 is what I did) however from the matlab, the gain margin crossover is start from -540 instead of -180 degree by using "Margin" function(Picture2...
36. Determining baseband S/N ratio and link margin for a satellite link

Hi everyone, I'm not sure if this is the right section to post this in, but the question doesn't really seem to fit any singular category, so I'll try this one (if someone has a better recommendation, please let me know!) The question I'm seeking to answer is this: A baseband signal of...
37. Bode Plot Question(Phase and Gain Margin)

I have been drawing a few bode diagram by hand and i am ask to find the phase and gain margin of the plot. Can someone please explain what are phase and gain margin, including how to determine it from the bode plot?
38. Solving an Inequality to Determine profit margin

Revenue Equation: R(x)=-x^2+10x Cost Equation: C(x)= 4X+5 Average profit= profit equation, P(x)/x therefore p(x)= R(x)-C(x)=-x^2+6x-5 (-x^2+6x-5)/x=(-1(x-5)(x-1))/x, I then found that x is positive between 1 and 5, therefore average profit is positive in that range, however, the answer...
39. Basis for Margin of Error in Opinion Polls?

Hi, Just curious as to what is the basis of the margin of error given in polls, e.g., in statements of the form:" 30% of people are in favor of candidate x. The poll has a margin of error of +/- 5 %" Thanks.
40. Logic Design- Transfer Characteristics and Noise Margin

Hello, I have the following question which I'm not quite sure about. I have the following Transfer Characteristic for a buffer. You can see the graph breaks at the points (2,0),(3.5,4),(5,5) http://img521.imageshack.us/img521/5052/captureen.jpg I need to set the appropriate values...
41. Standard Errors and Margin of Error

Hello All, I am having to brush up on my stats for work and it's been a long time (>10yrs) since I've had to even think about this stuff. I could do with some help clarifying a specific point about standard errors and margin of error. An example I am looking at from my old notes is this: the...
42. Safety margin to acceptance criteria

10 CFR 50.46 gives the acceptance criteria as the required condition for the performance of ECCS. There, it is indicated that PCT (Peak Clad Temperature) must be below 2200F. On the other hand one can rarely find an accident analysis for NPPs with the result of the analysis showing the PCT...
43. How can Simpson's Rule have a large margin of error?

\int tan(x)dx with the limits of 0 to 1.55, with n=10. Using Simpson's Rule, my answer was 4.923651704. But I don't understand why Simpson's Rule varies from my calculator's answer (TI-84 Plus) which is 3.873050987. I thought the higher N with Simpson's Rule would make your answer even more...
44. Calculate Power Margin Required to Prevent Satellite Link Drop

Hi, I've been looking at some example solution and still haven't found the physical/mathematical explanation for the given solution. Problem: Due to slow satellite stabilization rotation there are big differences between maximums and minimums of received signals. Calculate the power...
45. Source for the margin of error of curvature

I have seen in a few places around the web that the margin of error for the flatness of the universe is about 2%, but haven't seen any citations. Could anyone refer me to a reputable paper that I could cite that mentions what this margin of error is? Thanks!
46. Gain Margin, Open or Closed Loop?

Homework Statement I'm given a closed loop transfer function with a gain, K=1 and a plant H(s). I need to find the gain margin of the system. Homework Equations I know how to solve this problem: a) I find the frequency where the phase is -180 degrees. b) I find the gain at that...
47. Short Edge Margin: Is 1.36D Sufficient to Prevent Shear-Out?

Hello All, I have short edge margin condition of 1.36D on one of the part.Actually 3 parts of aluminum are joined together by bolts and one part has short edge margin. All the parts have sufficient bearing strength.So if I understand right bearing failure occurs before...
48. Gain margin - control and automation

hi alll! just a quick one. You know when you design a controller - you go and plot the open loop transmission, L(jw) on a nichols plot, where L(jw) = C(jw)H(jw) P(jw) where P and C are the plant and controller respectively. You then 'manipulate' this plot (i.e. vary your controller) until...
49. Phase and gain margin (control)

hey guys. this has to do with determining the phase and gain margins of a system. i've read and understood the follwing: "To find GM, first find the phase crossover frequency, wGM. This is the frequency where the phase curve passes through -180. Get the magnitude at that frequency...
50. Static margin and longitundiual stability

hi i've a problem with the definition of static margin and the role of horizontal stablizer on static margin, is ther anyone to help me thanks erkan