Futures · Pro
Initial margin
What does Initial margin mean?
Initial margin is the collateral requirement to establish a margined position. Futures brokers can require more than the exchange minimum, and requirements can change.
Example
A broker requires a specified amount before accepting a new futures position.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Margin is not a fee or a maximum possible loss.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.