Initial Margin

RECENT NEWS
Mondo Visione  Oct 27  Comment 
Effective from October 28, 2009, C-COM is to change the structure of the Daily Price Fluctuation Limit and the Initial Margin of Gold Futures Contract for all the contract months (January, February, March and April 2010). As a result, the...
Mondo Visione  Sep 30  Comment 
As of the evening clearing session on September 28, 2009 the basic size of Initial Margin on the RTS Index futures has been changed as required by the Clearing Rules:
Mondo Visione  Sep 10  Comment 
In accordance with Appendix 5 to the Clearing Rules the following basic sizes of Initial Margin to be posted on delivery contracts with settlement on September 15, 2009 will be in effect for the settlement period from the evening clearing session...
Mondo Visione  Jul 30  Comment 
Due to decline in the volatility of the international gold market, the minimum size of the basic initial margin on the gold futures contract trading on FORTS (trading system code GOLD) will be reduced from 10% to 7.5% starting from July 29, 6:00...
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Generally, Initial Margin is the minimum required value in an account necessary to open (either buy or sell) a position on a futures contract. The initial margin is typically higher than the maintenance margin, and, as such, has nothing to do with the issuance of a margin call.

The initial margin servers as something of a proof of the amount of money an investor has at his disposal. Since the initial margin does not need to be maintained (in contrast to the maintenance margin) a leveraged investor could theoretically remove the difference between her initial margin and maintenance margin and put that money to another investment.

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