Initial Margin
The deposit required to open a futures position. Set by the exchange and typically 3–12% of contract value.
Maintenance Margin
The minimum equity that must be kept in the account. If equity falls below, a margin call is issued.
Variation Margin
End-of-day mark-to-market flows: gains are credited, losses are debited, daily.
Micro vs Standard
CME offers "micro" contracts at 1/10 the size of standard ones — much lower margin, retail-friendly risk.
Managing Margin
- Never operate at 100% of available margin
- Reserve at least 30–50% as a buffer
- Reduce size around news and expirations
Key Takeaways
- Margin is not a fee — it is collateral.
- Futures margin requirements can change with volatility.
- Always know how much room you have before stop-out.