overmargin

From over- +‎ margin.

overmargin (plural overmargins)

1. The amount by which something is bigger, stronger, or with greater capacity than the absolute minimum.
   • 1914, American Lumberman, page 99:

     Breastbeams—wood, cast steel, angles and channels—are carefully designed, with a big overmargin of strength.

   • 1923, The American Artisan and Hardware Record - Volume 86, page 23:

     Premiers stand up because they are correctly designed and made with an overmargin of safety.

   • 1975, Fujitsu Scientific & Technical Journal - Volumes 12-13, page 32:

     From this result, M-G-M type can allow link loading of about 90%, which may be too large ordinarily, resulting in provision of an overmargin for traffic handling capacity.

2. The upper rim or border of something.
   • 1990, Egyptian Journal of Geology - Volume 34, Issues 1-2, page 172:

     The processes of sabkhaization imply an overmargin shallow biogenic marine carbonate sedimentation mixed with distal alluvial fan deposition followed by solution redeposition of the carbonate to sulfate and dolomite;

overmargin (third-person singular simple present overmargins, present participle overmargining, simple past and past participle overmargined)

1. (finance) To invest too much on margin, increasing risk and limiting operating capital.
   • 1984, Stephen Figlewski, Margins and Market Integrity: Margin Setting for Stock Index Futures and Options:

     Algorithms in current use differ in their ability to select a matching that does not overmargin a complicated position.

   • 2010, Robert W. Kolb, Lessons from the Financial Crisis, →ISBN:

     Finally, exchanges need to be wary of adverse selection — positions that are undermargined would be heavily used while those that are overmargined would be less popular.

   • 2014, James Cordier, Michael Gross, The Complete Guide to Option Selling, →ISBN:

     Bulging with overconfidence, they load up their accounts and way overmargin themselves.

• overarming