Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Web Trader MT5
V
Valuation
The process of determining the value of a product, company or asset.
Value at risk (VaR)
A measure of the maximum potential loss for a product over a specific time period and at a specific level of confidence.
Value date
The date on which a financial transaction is settled and funds are exchanged.
Value investing
A strategy of investing in undervalued companies in hopes of realising long-term gains as their value is recognised by the market.
Vanuatu Vatu (VUV)
The Vanuatu vatu, known by the currency code VUV, is the official currency of Vanuatu. It is issued by the Reserve Bank of Vanuatu and used for everyday payments across the island country.
Unlike many currencies, the vatu is not divided into a smaller unit such as cents. Prices are shown in whole vatu. The symbol VT is also commonly used.
If USD/VUV rises from 115 to 120, one US dollar now buys more vatu. This means the vatu has weakened against the dollar.
The word vatu means “stone” in a local language. The currency was introduced after Vanuatu became independent and replaced the New Hebrides franc.
Variation margin
Variation margin is money added to or removed from a trading account as the value of an open futures or derivatives position changes.
When the position is opened, the trader first deposits initial margin. This is money held as security. The position is then valued again, usually at the end of each trading day. If it has lost $600, the trader may need to pay $600 in variation margin. The other side of the trade receives the matching gain.
This process happens while the position is still open. It prevents unpaid losses from building up until the contract ends and helps the clearing house manage the risk between both sides.
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