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Standardized initial margin calculation

The 0.40 constant reflects the minimum risk that cannot be offset through netting. Even if a portfolio has high netting (a high NGR), there is still some residual risk that is not captured through net …
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Collateral Management - Initial Margin Frequency

Initial Margin is required when a trade is executed, and it's typically posted once at the outset of the trade. This initial collateral is meant to cover potential closeout costs in case of default. W …
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Why does buying future options require margin?

When you buy a future option, you need to post IM if the option is exercised and turns into a futures contract. To summarise: Buying a future option: No IM is needed, only option premium. Selling of …
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