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Margin

With respect to buying on margin, it is the money put up in a margin account to partially finance the...

Margin Account

Cash and marketable securities an investor deposits with a broker to guarantee that the former will honor or keep up...

Maturity Date

The date on which a derivative instrument expires or becomes due for payment or settlement. It is also referred to...

Mark To Market

The practice which is used to revalue a financial instrument, in general. In the context of derivatives, marking to market...

Multi-Asset Option

An exotic option whose payout (payoff) depends on the overall performance of more than one underlying asset, as opposed to a standard vanilla...

Madonna Option

A variation on maximum and minimum options (best-of and worst-off options) which pays the Euclidian distance between the current price and the strike price of its...

Moneyness Option

A plain vanilla option in which the strike is determined as a percentage of the future/forward price. For instance, a 110% moneyness...

MM Derivative

It stands for money-market derivative: a short-term interest rate derivative that is used in money market trading and hedging. Examples of money market derivatives...

Money Market Derivative

A short-term interest rate derivative that is used in money market trading and hedging. Examples of money market derivatives include short-term interest rate futures and forward rate agreements (FRAs), short-dated...

Multiple Exercise Option

An option that allows the holder to repeatedly exercise the right to receive greater or smaller amounts of the underlying. In...