margin
Sign in to savetype of financial collateral used to cover credit risk
~17 min read
Article
In finance, margin is the collateral that a holder of a financial instrument has to deposit with a counterparty (most often a 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,
Connections
option
Entity
derivative
Entity
futures contract
Entity
speculation
Entity
short
Entity
Great Depression
Entity
finance
Entity
stock exchange
Entity
interest
Entity
New York Stock Exchange
Entity
Federal Reserve System
Entity
trading venue
Entity
JSTOR
Organization
Wall Street crash of 1929
Entity
dividend
Entity
stock market
Entity
government debt
Entity
financial market
Entity
Great Recession
Entity
broker
Entity