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SONIA

SONIA, or the Sterling Overnight Index Average, is a key benchmark in the world of finance. It measures the overnight interest rate that banks pay for unsecured transactions in the British sterling market. This rate is crucial for understanding the cost of funding for trades that take place outside of normal business hours. Essentially, SONIA reflects the level of overnight activity in the marketplace, providing valuable insights for financial analysis and decision making.

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Understand the meaning and definition of Initial margin requirement in the context of stock market, trading, and investments.

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