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   Bilateral Margining Agreement
   















 

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Bilateral Margining Agreement

A collateralization arrangement to assure both parties' performance on a swap or other OTC risk management contract. The agreement requires each counterparty to deposit margin with the other counterparty or a third party depending on the value of its net obligations. See also Asymmetrical Margining Agreement.

Find out about other methods of protecting customers in "Key Risk Concepts: Customer Protection."

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