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Margin Threshold means the figure being equal to the minimal Market Value of the Collateral required by the Lender from time to time in order to secure Borrower's obligations under respective Loan (a set of Loans).
In derivatives markets, initial margin is one of two types of collateral required to protect a party to a contract in the event of default by the other counterparty. Variation margin ? the other type of collateral ? is paid daily from one side of the trade to the other, to reflect the current market value of the trade.
The initial margin calculation simply requires the investor to multiply the investment amount by the initial margin requirement percentage.
Initial margin (IM) is collateral collected and/or posted to reduce future exposure to a given counterparty as a result of non-cleared derivative activity. Whilst there is a recognised process within exchange traded and cleared derivatives, this is largely a new process for non-centrally cleared OTC derivatives.
The two both relate to the amount of cash vs. the amount you can borrow when investing. However, the initial margin requirement is the amount of cash or collateral required to actually purchase securities; the Federal Reserve's Regulation T sets that sum at a minimum of at least 50% of the purchase.