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Finance & Banking vocabulary · Risk Management

Margin period of risk

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, margin period of risk means: The interval from the last collateral exchange until positions can be closed out and the resulting exposure rehedged.

In Turkish: teminat risk süresi

How it is used

Abbreviated MPOR; it represents potential exposure while collateral protection cannot be fully updated.

Example sentences

  1. Illiquid positions required a longer assumed margin period of risk.

    Positions that take longer to replace leave exposure open longer.

  2. The model tested how a collateral dispute would extend the margin period of risk.

    Operational delays can lengthen the unprotected interval.

Common collocations

  • margin period of risk assumption
  • MPOR adjustment
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.
  • counterparty riskThe risk that the other party in a financial deal, such as a derivative, repo or FX trade, fails to pay or deliver what it owes before the deal is completed.

More terms: Risk Management

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This page explains English vocabulary for learners. It is not financial advice.