# Cash margin

- Canonical URL: https://www.gerhardmerk.de/cash-margin
- Post ID: 593490
- Modified: 2023-07-25T21:00:59+00:00
- Language: en

## Definition

In commodity markets, and especially in the gold market, a common term for the percentage of central bank money - usually thirty-five percent - that must be deposited in a futures contract - usually at least 100 ounces, about three kilograms. - This margin amount is credited to a separate margin account and remains blocked there until the contract matures. If the price of gold falls after the contract is signed, then additional margin cover must be obtained; this is because the crediting (of eighty-five percent) always relates to the market value of the forward gold. - See cash deposit, credit risk, margin, margin call, margin cover, commodity futures contract, variation margin, margin of safety, backing. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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