Margin (finance) - Wikipedia

CentralNotice From Wikipedia, the free encyclopedia Jump to: navigation , search For the 2011 film, see Margin Call (film) . This article needs attention from an expert on the subject . Please add a reason or a talk parameter to this template to explain the issue with the article. Consider associating this request with a WikiProject . (April 2012) 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. 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 , or Entered into a derivative contract. The collateral for a margin account can be the cash deposited in th...

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