initial margin

What is initial margin?

initial margin definition and meaning on Finance terms:
For instruments cleared by a central counterparty (CCP), the amount of collateral that each participant is required to provide to the CCP (or the clearing member) in order to cover potential losses in the event of that participant defaulting. The initial margin is calculated on the basis of a formula set by the CCP. See also
haircut
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reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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