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DERIVATIVES

Variation Margin

Transfers collateral reflecting current mark-to-market changes according to the applicable margin framework.

Market use

Helps manage current counterparty exposure.

What it means

Transfers collateral reflecting current mark-to-market changes according to the applicable margin framework.

Example

A losing position may owe variation margin as market value moves.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.