REMARGINING Meaning and
Definition
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REMARGINING is a term primarily used in the field of finance and banking. Although not commonly referred to in everyday conversation, it is important to understand the concept for those involved in the financial industry.
REMARGINING refers to the act of revising or adjusting the margin requirements for a given asset or investment. Margin requirements typically dictate the amount of funds or collateral that an investor must maintain in their account in order to make trades. These requirements exist to protect both the investor and the lender from potential losses.
When a margin call is triggered due to a decline in the value of the investment, the investor may be required to deposit additional funds or collateral into their account to meet the new margin requirement. If the investor cannot meet the margin requirement, the lender may reevaluate the terms of the margin agreement, which ultimately leads to remargining.
Remargining can involve various actions, such as increasing the margin requirement, requesting additional collateral, charging higher interest rates, or adjusting loan terms. These revisions are made to ensure that the investment remains secured and the lender is appropriately protected. Remargining is often carried out in consultation with the investor, as it may have significant implications for their financial position.
Overall, remargining is an adjustment made to the margin requirements of an investment to address changes in its value, ensuring the necessary protection of both the investor and the lender.
Common Misspellings for REMARGINING
- eemargining
- demargining
- femargining
- temargining
- 5emargining
- 4emargining
- rwmargining
- rsmargining
- rdmargining
- rrmargining
- r4margining
- r3margining
- renargining
- rekargining
- rejargining
- remzrgining
- remsrgining
- remwrgining
- remqrgining
- remaegining
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