The amount of money that is collected from market participants with substantial or concentrated positions against a central counterparty (CCP) or in response to adverse information on a participant’s financial position. Additional margin is paid as an addition to the initial margin (IM) in order to cover a potential fall in the value of a position on the following trading day.
It is part of the different types of margin, literally: initial, variation and additional margin. All such types constitute the so-called total margin.
Additional margin represents all margins imposed on both long and short positions over and above the other margins.
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