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Base Margin | Definition

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Base Margin

Written by Jo Burnham13th June 2022

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What Is Base Margin?

Base Margin is the main component of any Initial Margin algorithm. It is a measure of the market risk of a portfolio under normal market conditions. Put another way, it is an estimate of the amount that the portfolio might be expected to lose over the holding period.

Learn More About Margin

Discover more of our content around Margin by clicking one of the links below. Additionally, learn other definitions of key margin terminology with our A-Z Margin Terminology page. Lastly, learn more about OpenGamma by watching our demo and taking a look at our product and solutions pages.

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