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...

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...