Definition of Margin:

The amount of money or collateral deposited by a client with his or her broker, or by a clearing member with the Clearing House, for the purpose of insuring the broker or Clearing House against loss on open futures or options contracts.  The margin is not a part payment on a purchase. 

1) Initial margin is the total amount of margin per contract required by the individual when a futures position is opened

2) Maintenance margin is a sum which must be maintained on a deposit at all time.  If a customer's equity in any futures position drops to or under the maintenance level because of adverse price action, the broker then issues a margin call to restore the customer's equity.

See our Margin Section for information on current margin requirements for various commodities available for trade.