Variation margin VM definition

Initial margin calculations typically involve factors such as asset volatility, required leverage, and position size. Variation margin, in contrast, depends on the daily price fluctuations of the underlying asset. It’s calculated based on the difference between the current market value and the contract value of the open position. If the position’s value moves against the…

Which Transactions Affect Retained Earnings?

You’ll find retained earnings listed as a line item on a company’s balance sheet under the shareholders’ equity section. It’s sometimes called accumulated earnings, earnings surplus, or unappropriated profit. Since stock dividends are dividends given in the form of shares in place of cash, these lead to an increased number of shares outstanding for the…