Initial margin
Definition · Level 7 · Futures, rates & macro
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Performance-bond deposit required to open a futures position; the exchange's clearinghouse sets the minimum and brokers can ask for more. Under the standard rule, a margin call must restore equity to this level.
Example
Posted per contract before the order is accepted.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 7 · Futures, rates & macro, in the lesson “Margin, mark-to-market & hedging”: Performance bond, daily variation margin, margin calls, and how to hedge a stock book with ES.
Related terms
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