Margin Requirements

Initial margin is the deposit required to maintain either a short or long position in a futures contract, it is NOT a cost. The maintenance margin is the amount of initial margin that must be maintained for that position before a margin call is generated. The maintenance margin level is NOT additional to the initial margin.

For example if the initial margin for a mini silver contract is $1,000 and the maintenance margin level is $750, $1,000 would need to be allocated as initial margin. If the silver position lost let's say $300 one day, the value of the $1,000 initial margin would now only be $700, which is below the $750 maintenance requirement. Therefore, $300 from the trading account would be automatically allocated towards bringing the initial margin figure back to $1,000. If there were not excess funds in the account to automatically bring the initial margin amount back up to $1,000, a margin call would be generated. Margin calls need to be either immediately met with additional funds or the position will be liquidated.


For current margin amounts you may login to our Client Services section or contact us.