Futures Margin

Futures Margin is the minimum amount of funds that a trader must deposit with their broker as collateral to open and maintain a futures position. Unlike equities, futures are leveraged instruments—the margin required is only a fraction of the contract's total value. There are two types: Initial Margin (deposited when entering the contract) and Maintenance Margin (the minimum balance required to keep the position open). If an account falls below the maintenance margin, a margin call is triggered, requiring the trader to deposit additional funds immediately.