Daily Collateral Movements (e Sample Clauses

The 'Daily Collateral Movements' clause establishes the requirement for parties to adjust the amount of collateral posted or received on a daily basis to reflect changes in exposure. In practice, this means that each business day, the parties will calculate the current exposure and transfer additional collateral if needed, or return excess collateral if the exposure has decreased. This mechanism ensures that the collateral held is always sufficient to cover the current risk, thereby minimizing credit risk and maintaining financial security between the parties.