performance bond

Definitions

Construction

Forex

  • The deposit of liquid funds with a broker by a trading client or with a clearing house by a broker or clearing member. Having market participants post a performance bond to help assure the satisfaction of trading debts helps increase the overall security of the financial system, including exchanges and the retail forex trading industry. also called margin.

Law

  • noun a sum of money deposited as a guarantee that you will carry out the terms of a contract
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