LOS 72b
b. differentiate between margin in the securities markets and margin in the futures
markets; and define initial margin, maintenance margin, variation margin, and
settlement price;
Maintenance margin - When the value of the funds on deposit with a broker reach a certain level where the trader is required to replenish the margin.
Variation margin - The additional amount the trader must deposit to return to the maintenance margin.
Initial margin - The amount a trader must deposit before trading any futures.
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