Web Trader MT5
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.
