Margin Payment
When-issued contracts are bought on margin, meaning that the buyer must collateralize the purchase with an up-front payment to the seller, no less than 50% of the market value at the time of the purchase. Mark-to-market provides a daily record of the current market value of the security relative to its when-issued contract price. A security’s value can move sharply in any direction between the time of purchase and the time of delivery. If the value of the investor’s stake in the security falls below the margin r
