Learn more about the purpose of variation margin and how it works on a day to day basis.
VM is a daily calculation which uses the end-of-day valuations of all the trades in a portfolio. Learn more about how it works.
Learn more about the purpose of initial margin and how it works on a day to day basis.
In most cases IM is re-calculated daily to reflect the changing composition of the portfolio, changing market conditions and daily updates to scenarios.
A worked example of IM