variation margin การใช้

The threshold amount for daily futures variation margin for institutional investors is often $ 1, 000.
The main credit support documents governed by English law are the 1995 Credit Support Annex, the 1995 Credit Support Deed and the 2016 Credit Support Annex for Variation Margin.
In most cases involving institutional investors, the daily variation margin settlement guidelines for futures call for actual money movement only above some insignificant amount to avoid wiring back and forth small sums of cash.
The counterparties are exposed to each other's failure to make scheduled payments on the underlying swap, although this exposure is typically mitigated through the use of collateral agreements whereby variation margin is posted to cover the anticipated future exposure
This is sometimes known as the variation margin, where the Futures Exchange will draw money out of the losing party's margin account and put it into that of the other party, ensuring the correct loss or profit is reflected daily.