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margining

7.9

Putting money or assets up as security for a trade to reduce risk

noun

Specialized

: margen

Effective margining helps financial institutions manage their exposure to market risks.

Examples

The new regulations introduced stricter rules for margining in derivatives trading.
Many traders rely on margining to secure their positions.
Banks require margining to ensure that clients can cover potential trading losses.
The margining process helps reduce financial risk.
Banks require margining to ensure that clients can cover potential trading losses.
Effective margining helps financial institutions manage their exposure to market risks.
Many traders rely on margining to secure their positions during volatile market conditions.

How Leveraged

to overleverage

Specialized

1 8.8

leveraging

Specialized

7.7

margining

Specialized

7.9

borrowing

60 2.3

to invest

715 3.5

Surface Forms

margining singular

marginings plural

Morphology

margining = margin (semi-transparent) = margin + ing

Morphologically regular (gerund of the finance verb 'to margin') but the sense relies on specialized financial meaning of 'margin' which is not obvious to general learners.

Etymology

Margining comes from the word margin, which originally means 'edge' and later came to mean an 'extra amount' or 'safety'. A helpful way to remember this sense is to think of putting money at the edge as a safety net, so margining in finance is giving that extra money to cover possible losses.