A value that takes into account the potential movement of a stock in relation to its option position. A more volatile investment would have a higher risk margin, since the potential for large swings in price is greater than that of a more stable investment. Premium margin and risk margin are the two components comprising the margin requirement.
Related information about risk margin:
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Definition of risk margin: A value that takes into account the potential ... Premium margin and risk margin are the two components comprising the margin ...
- Risk Margin - Deloitte
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a) The VaR Margin is a margin intended to cover the largest loss that can be encountered on 99% of the days (99% Value at Risk). For liquid stocks, the margin ...
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- Accounting for Risk Margins - Casualty Actuarial Society
reflecting and amortizing a risk margin, which when used with discounted loss reserves, ... risk margin should be incorporated into statutory accounting, and it is ...
- Helper tab for the calculation of the risk margin. - Eiopa
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