The Margin Cushion is calculated as the account’s Excess Liquidity divided by the Net Liquidation Value. It provides a quick reference to monitor how much margin buffer remains before the account may become subject to a margin deficiency. In MEXEM terminology, Excess Liquidity generally represents the cushion before liquidation. For the securities segment, Excess Liquidity is calculated as Equity with Loan Value minus Maintenance Margin; for the commodities segment, it is calculated as Net Liquidation Value minus Maintenance Margin.
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