Glossary › initial margin

Trading glossary · advanced

initial margin

The money you must put down to open a buy-it-later deal, like a deposit.

The fuller meaning

The deposit required to open a futures position, set by the exchange and changed over time. Daily mark-to-market gains and losses move through the account; if it falls below the maintenance margin, a margin call asks for funds to bring it back up to the initial level.

initial margin.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger