Risk glossary


Initial margin

The amount of collateral that must be posted to the opposite party in a trade (the counterparty, exchange, or clearer/central clearing counterparty (CCP)) that reflects the risk of the trade moving in the future. Will be posted when the trade is struck and afterwards. There are several algorithms used for the calculation margin, such as SPAN.

* see also central clearing counterparty (CCP); collateral; variation margin

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: