What Margin Do You Need to Trade Futures?
Intraday and initial margin explained, and where to find the rates that apply to your account.
Published
Topic
Orders & Positions
Margin is the amount you must have in your account to hold a futures position. It is not a payment or a deposit toward the contract. It is the balance the broker requires you to keep while the position is open.
Table of Contents
Intraday margin and initial margin
When each one applies
Margins can be raised
If your balance falls short
In the demo
Intraday margin and initial margin
Intraday margin is set by the broker. It is the balance you must keep per contract while you are in a trade during normal trading hours. Positions opened and closed in the same session carry less overnight risk, so the requirement is lower.
Initial margin is set by the exchange. It is the higher requirement that applies when you carry a position past the end of the session.
When each one applies
Intraday margin applies from the product's open until shortly before the session closes. From that point the exchange's initial margin is required for anything you are still holding. If you intend to hold overnight, plan for the higher figure well before the close.
Margins can be raised
Requirements are not fixed for ever. Exchanges and brokers raise them around major economic releases, holidays and periods of unusual volatility. A position that met the requirement yesterday may need more today.
If your balance falls short
If your account no longer covers the margin on your open positions, they can be reduced or closed to bring the account back within its requirement. This is why traders keep a buffer above the bare minimum rather than trading right at the limit.
In the demo
Demo accounts use simulated money, so your capital is never at risk and no real funds are ever required. Margin figures still behave exactly as they would in a live account.