How Does a Margin Call Differ from a Collateral Call in OTC Derivatives? ▴ Learn

How Does a Margin Call Differ from a Collateral Call in OTC Derivatives?

A margin call is a standardized demand for funds based on the MTM process of a centrally-cleared futures contract. A collateral call in OTC derivatives is a similar demand for additional collateral, but it is based on the terms of a bilateral agreement (Credit Support Annex or CSA) and is often less frequent (e.g. weekly) and less standardized than a futures margin call.

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