Variation Margin

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Definition of 'Variation Margin'

A Variation Margin is the amount that you are required to pay into your account to bring the Maintenance Margin back to its minimum level. Your broker (or the clearing house) may require that you pay in more to than the minimum amount to get you to the Maintenance Margin.

Variation margin is paid on a daily or intraday basis in order to reduce the exposure created by a position moving adversely against the trader. Brokers will issue a Margin Call against the trader requesting that they pay in a Variation Margin.

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