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Forex what is collateral

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The attached Collateral Annex provides model contractual terms for one-way collateralization of foreign exchange or currency option transactions governed by. What are the types of Margins collected in Forex Segment? Initial Margin in the form of USD collateral is deposited by a member to support the exposure limits. It has also shown the importance of the ”choice” of collateral currency. In particular, when a contract allows multiple currencies as.