variation-margin
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P1.T3.24.3 Implementation, Calculation, and Role in Exchange-Traded and OTC Markets
Learning Objectives: Describe the implementation of a margining process and explain the determinants of and calculate initial and variation margin requirements. Describe the process of buying stock on margin without using CCP and calculate margin requirements. Describe the role of...- Nicole Seaman
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- collateralization exchange-traded-markets initial-margin margining-process otc-market variation-margin
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- Forum: FRM® Practice Questions
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P2.T6.24.30. Loss Waterfall and Variation Margin
Learning Objectives: Discuss the risks faced by a CCP and the ways it manages its exposures. Provide examples of a loss waterfall. Explain the different methods of managing the default of one or more members of a CCP. Questions: 24.30.1. RiskShield CCP is a central counterparty that clears a...- Nicole Seaman
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- central-counterparties default loss-waterfall variation-margin
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- Forum: FRM® Practice Questions
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Initial vs Variation margin
Dear all, I can’t really get the idea why initial and variation margin are generally different? Let’s say market value of a share equals 100 , its 99% 1 day var equals 7. I am a broker and I set margin requirements for my client as 7 to be 99% sure I will not suffer a loss in the next day...- Maxim Rastorguev
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- initial-margin maintenance-margin variation-margin
- Replies: 6
- Forum: P2.T6. Credit Risk (25%)
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Variation margin
It seems like there is a conflicting meaning of variation margin in the readings. The institute for Financial markets (page 21 in GARP FRM book) seems to indicate that the daily settlement of gains and losses refers to variation margin (so not only in case of a margin call) Hull Chapter 2...- ancl9
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- variation-margin
- Replies: 6
- Forum: P1.T3. Financial Markets & Products (30%)