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| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
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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