Initial Margin

RECENT NEWS
Mondo Visione  Sep 1  Comment 
The International Swaps and Derivatives Association, Inc. (ISDA) today announced the live launch of the ISDA Standard Initial Margin Model (ISDA SIMMTM), an industry standard methodology that is being widely adopted by market participants to...
Mondo Visione  May 20  Comment 
NCC Clearing Bank informs about preliminary risk parameters for new securities to be accepted in margin trading after the securities market release. Initial margin rates and concentration limits.
Mondo Visione  Dec 9  Comment 
In order to facilitate the introduction of final BCBS-IOSCO guidelines for “Margin requirements for non-centrally cleared derivatives”, published September 2, 2013 (BCBS 261, “the Guidelines”), ISDA is proposing a standard initial margin...
Mondo Visione  Nov 7  Comment 
The Kansas City Board of Trade today will set customer initial to maintenance ratios to 1.00, setting the initial margin upcharge to zero. This will be in effect from today forward until further notice. This change is intended to be...
Mondo Visione  Mar 18  Comment 
Joint-stock company "RTS Clearing Center" decided to change the basic size of Initial Margin on ordinary shares of OJSC "Uralsvyazinform" admitted to trading on RTS Standard. The Initial Margin change for these securities will take place ...
Mondo Visione  Dec 20  Comment 
In compliance with the decision of the RTS Derivatives Market Committee the Initial Margin requirement will be increased by the RTS Clearing Center for the holidays season in two stages: 1 stage - during the evening clearing session...
Mondo Visione  Sep 7  Comment 
On September 7, 2010, during the evening session period (6:45 pm - 7:00 pm) the size of initial margin for futures contract on gasoil (DS) will be decreased.
Mondo Visione  Apr 7  Comment 
On April 6, 2010 the Derivatives Market Committee of RTS Stock Exchange decided to cut down the basic size of Initial Margin on the RTS Index futures and RTS Standard Index futures from 10% to 7.5%.
Mondo Visione  Dec 21  Comment 
In compliance with the decision of the RTS Derivatives Market Committee the Initial Margin requirement will be increased by the RTS Clearing Center for the holidays season in two stages: 1 stage - during the evening clearing...
Mondo Visione  Dec 10  Comment 
In accordance with Appendix F5 to the Clearing Rules for the period from the evening clearing session of December 10, 2009 to the clearing session of December 15, 2009 the minimum basic size of Initial Margin on delivery futures contracts to be...




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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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