Margin

Margin is the collateral, typically cash or highly liquid securities, that a counterparty in a financial transaction must post to a clearing house or another counterparty to cover potential future losses and mitigate credit risk. In the context of Treasury and Real World Assets (RWA), margin is a critical risk management tool used in derivatives, repurchase agreements (repos), and increasingly, as tokenized RWA are utilized as eligible collateral in regulated markets.