Margin definition
Examples of Margin in a sentence
Initial Margin is intended to maintain the relative value of the funds to be purchased from or sold to Cambridge pursuant to a Derivative Contract or to address, in Cambridge’s sole discretion, an adverse change in Client’s financial standing and/or credit worthiness or an adverse change in the external economic environment.
Any request made after 12 p.m., Cambridge Local Time, will be processed by Cambridge the following Business Day and the surplus Variation Margin will be returned to Client in a timely manner.
Cambridge may, in its sole discretion, require Client: (i) to provide Initial Margin in relation to any Derivative Contract within twenty-four (24) hours of Client’s instructions to enter into a Derivative Contract; and/or (ii) to provide Initial Margin, if not already provided, within one (1) clear Business Day at any time during the term of a Derivative Contract.
In the event that any Initial Margin and/or Variation Margin is used to set-off any amounts owed by Client, Client shall immediately restore the Initial Margin and Variation Margin requirements for all Derivative Contracts, as required by Cambridge, failing which Cambridge may terminate any or all unfulfilled Orders and Client shall be responsible for all of Cambridge’s Losses as a result of such termination(s).
Cambridge may, without prior notice, set-off any amount owing by Client to Cambridge against any other amount owing by Cambridge to Client, including amounts held as Initial Margin and/or Variation Margin.