|Margin requirement (Options)
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Definition of Margin requirement (Options)
Margin requirement (Options)
The amount of cash an uncovered (naked) option writer is required to
The ratio of net income to net sales.
A common element of a financial plan that describes projected capital spending and the
Contracts with trigger points that, when crossed, automatically generate buying or selling of
Packages that involve the exchange of more than two currencies against a base currency at
The ratio of net income before taxes to net sales.
A transaction in which an investor borrows to buy additional shares, using the shares
The difference between variable revenue and variable cost.
Over-the-counter options, such as those offered by government and mortgage-backed
The options available to the seller of an interest rate futures contract, including the quality
The dollar equivalent of the safety cushion for a portfolio in a contingent immunization
Used with SAT performance measures, the amount equaling the net earned spread, or
Securities that give the holder the right to buy or sell a specified number of shares of stock, at
Gross profit divided by sales, which is equal to each sales dollar left over after paying
When buying securities on margin, the proportion of the total market value of
A sum, usually smaller than -but part of the original margin, which must
This allows investors to buy securities by borrowing money from a broker. The margin is the
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
A demand for additional funds because of adverse price movement. Maintenance margin
Marginal tax rate
The tax rate that would have to be paid on any additional dollars of taxable income earned.
Materials requirement planning
Computer-based systems that plan backward from the production schedule
Net operating margin
The ratio of net operating income to net sales.
Net profit margin
Net income divided by sales; the amount of each sales dollar left over after all expenses
Operating profit margin
The ratio of operating margin to net sales.
A contract that, in exchange for the option price, gives the option buyer the right, but not
Options contract multiple
A constant, set at $100, which when multiplied by the cash index value gives the
Options on physicals
Interest rate options written on fixed-income securities, as opposed to those written on
The margin needed to cover a specific new position. Related: margin, security deposit (initial)
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
The percentage of different types of deposits that member banks are required to hold
Sinking fund requirement
A condition included in some corporate bond indentures that requires the issuer to
An additional required deposit to bring an investor's equity account up to the initial margin
The amount added to a lower figure to reach a higher figure, expressed as a percentage of the higher figure, e.g. the margin that profit represents as a percentage of selling price.
The cost of producing one extra unit.
Margin of safety
A measure of the difference between the anticipated and breakeven levels of activity.
An intermediate measure of profit equal to sales revenue
gross margin, or gross profit
This first-line measure of profit
The profit per unit sold of a product after deducting product
Profit Margin Ratio
A measure of how much profit is earned on each dollar of sales. It
cafeteria plan a â€śmenuâ€ť of fringe benefit options that include
cash or nontaxable benefits
the difference between selling price and
contribution margin ratio
the proportion of each revenue dollar remaining after variable costs have been covered;
margin of safety
the excess of the budgeted or actual sales
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
product contribution margin
the difference between selling price and variable cost of goods sold
product line margin
see segment margin
the ratio of income to sales
the excess of revenues over direct variable expenses and avoidable fixed expenses for a particular segment
total contribution margin
see contribution margin
The margin that results when variable production costs are subtracted
Revenues less the cost of goods sold.
The incremental change in the unit cost of a product as a result of a
Material requirements planning (MRP)
A computer-driven production methodology
marginal tax rate
Additional taxes owed per dollar of additional income.
options embedded in real assets.
Legal Reserve Requirement
See reserve requirement.
Marginal Propensity to Consume
Fraction of an increase in disposable income that is spent on consumption.
Marginal Propensity to Import
Fraction of an increase in disposable income that is spent on imports.
Marginal Propensity to Save
Fraction of an increase in disposable income that is saved.
Marginal Tax Rate
Percent of an increase in income paid in tax.
Fraction of total deposits that a commercial bank is required by the central bank to hold in the form of reserves.
EBITDA divided by total sales or total revenue.
Gross Profit Margin
Gross profit divided by revenue.
Material requirements planning
A computerized system used to calculate material
The component-level requirements for a production run,
A variety of options available to an investor to recover their invested capital and the return on their investment.
Margin Tax Rate
The tax rate applicable to the last unit of income.
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