DISCLAIMER: The definitions in this Glossary are for educational purposes only. They do not replace in any way the definitions used in local and global self-regulatory and regulatory codes and standards. The definitions in this Glossary do not in any way constitute advice. In no event shall Assure Hedge be liable for losses or damages arising from the use of information presented in this Glossary. We make every effort to ensure, but do not guarantee, the accuracy of the information in this Glossary. Information may contain technical inaccuracies or typographical errors. All content and information in this Glossary can be changed or updated without notice. If you find any inaccuracies or omissions in this Glossary, please let us know.

Initial Margin

Never miss out news

Subscribe to get new hedging insights straight to your mailbox.

By registering, I agree to the Privacy Policy and allow ALT21 to process my information
and send me any other information about its products, services and news.

Discover other concepts in our
currency hedging glossary

Hedge

A hedge is an investment that you make in order to manage your risk. When you hedge, you’re minimising or offsetting the possibility you’ll lose money should things go wrong.

Read more

Out of the money

‘Out of the money’ is one of three terms used to describe an option’s value, or ‘moneyness’. The other two terms are ‘at the money ‘ and ‘in the money’. When an option is out of the money, its strike price — that is, the price at which you’d exercise the option — is lower than the market price.

Read more

Barrier

Barriers are a feature of some options, where the option is activated or deactivated if the price of the underlying asset reaches or breaches a specific level – the “barrier.

Read more