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Performance Bond Margin

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Performance Bond Margin

Definition

The amount of money deposited by both a buyer and seller of a futures contract or an options seller to ensure performance of the term of the contract.

Margin in commodities is not a payment of equity or down payment on the commodity itself, but rather it is a security deposit.

See Customer Margin and Clearing Margin.

Related Terms

Other terms related to 'Performance Bond Margin' starting with the letter 'P'

Purchasing Hedge or Long Hedge, Prime Rate, Pit, Payment In Kind PIK Program, Position Trader

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