The mark-up is the sales price minus the cost divided by the cost equal to the percentage.
In economics, price increase means profit.
Profits are not only the same in quality, but also in essence and quantity.
The difference in profit is variable capital, while profit is total cost.
So once income is converted into profit, the source of profit and the material production it reflects are earned, so there are many forms of making money. In capitalist society, the essence of profit is the product of capital, which has nothing to do with labor.
If W stands for commodity value, K stands for cost and P stands for profit, then the composition of commodity value under capitalist conditions, that is, W=c+v+m=k+m, further becomes W=k+p, that is, commodity value is converted into cost price+profit.
The concept of surplus value clearly reflects the opposition between capital and labor, because it is the proliferation of variable capital and is occupied by capitalists free of charge; The category of profit seems to mean that capital itself can create a new value. This inversion is the inevitable product of capitalist mode of production.
First of all, because the constant capital+variable capital (c+v) consumed by capitalists to produce goods is converted into cost price, the essential difference between constant capital (C) and variable capital (V) is covered up;
Secondly, because the labor price is converted into wages, which is manifested as the remuneration of labor, and the surplus value is converted into profits, this has nothing to do with the labor elements of workers in essence, but is only the product of prepaid total capital;
Finally, the conversion of surplus value into profit is based on the premise that the surplus value rate is converted into profit rate, that is, with the help of profit rate, the profit that has been converted into excess cost is further converted into the balance that the prepaid cost exceeds its own price in a certain turnover period.
In real life, industrial manufacturers usually start from the established profit rate level, and then multiply the profit rate by the prepaid cost to get the expected profit amount. This is not a subjective illusion, but an objective thing that is completely possible.
Scientific argumentation and practice show that this kind of profit is actually an increase brought by variable costs. In a word, profit is internal essence or entity, and surplus is external phenomenon or form.
In the financial field, margin refers to the collateral that holders of financial instruments must deposit with their counterparties (usually their brokers or exchanges) to cover part or all of the credit risks caused by the holders to their counterparties.
This risk may occur if the holder has one of the following behaviors:
1. Borrow cash from the counterparty to purchase financial instruments;
2. Borrow financial instruments for short selling;
3. Conclude derivative contracts.
The collateral of the margin account can be cash deposited in the account or securities provided, and the securities represent the funds that the account holder can use for further stock trading. In the American futures exchange, the deposit was previously called the performance bond.
Today, most exchanges use the "risk standard portfolio analysis" method developed by Chicago Mercantile Exchange in 1988 to calculate the profits of options and futures.