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The member of stock exchange collect this margin from client and deposited the amount collected with the clearing house.It is imposed to control the excessive volatility in the market and it also prevent from building up excess outstanding position.

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Q: What is volatility margin?
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When would an investigator not want to purchase stocks by buying on margin?

When he anticipate high volatility as it may lead to squaring of his stocks or positions due to decrease in minimal margin to support the position.


What is the volatility of sugar?

The volatility of sugar is 600.00


What is a margin in commodities trading?

A margin in commodities trading, is the amount of money you have to deposit in your brokerage account before trading a futures contract. The margin amount varies on each commodity and fluctuates with the volatility of the markets. There is an initial margin amount required when entering a contract and "maintenance" margin amount that must be kept in the account at all times during the contract holding period, which is typically lower than the initial margin. The balance of your account will fluctuate with gains and losses on the contract and if the balance falls below the "maintenance margin" amount, you get a "margin call", which means you must deposit enough money to meet the margin or close your contract. If you don't do either of these options, the broker will close the position before the balance falls to zero.


What is volatility of alcohol?

Volatility is the measure of how easily something evaporates.


What does volatility mean in finance?

A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes, such as the CBOE Volatility Index, VIX.


What is the relationship of boiling point with volatility?

boiling point and volatility are inversely proportion


Is volatility a word?

Yes, volatility is a word and it means unstable or easily susceptible to external influences.For example, the volatility of the Stock Marketincreases as the economy weakens.


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What is the volatility of vodka?

volatility is the relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility


What are the examples of volatility in matter?

volatility is a property of matter. volatility of matter tells u the ability of that particular matter to evaporate. certain type of matter may have high degree of volatility where as others may have low or even no volatility.. eg: petrol is highly volatile. Even if it is left for a small time in the sun, it will evaporate very quickly.


What is the relative volatility of propane propylene system?

The relative volatility of the propane-propylene system is approximately 1.2. This means that the two components have a moderate degree of separation difficulty when distilling them. A higher relative volatility would indicate easier separation, while a lower relative volatility would indicate more challenging separation.


What is the VIX index?

VIX is not about volatility. The word "volatility" is used erroneously. Volatility would imply rapidly changing in EITHER direction. People have lost lots of money on account of the improper use of the word. I contacted the CBOE and they even admit the word is used incorrectly. They attribute it to a person 30 years ago who used the word improperly. It is a unidirectional measure of the ratio of S&P500 puts and calls, which is NOT volatility. The VXX is a product of Barclay's Bank and also uses the word "volatility" even though it does not track volatility, thus their product is misleading.Read more: http://www.answers.com/search?q=VIX+is+not+about+volatility.+The+word+"volatility"+is+used+erroneously.+Volatility+would+imply+raplidly+changing+in+EITHER+direction.+People+have+lost+lots+of+money+on+account+of+the+improper+use+of+t#ixzz1naTzgrKq