Derivatives · Glossary
Margin
Collateral allocated to support a leveraged position.
Definition and explanation
Margin is collateral required to open or maintain a derivatives position. Initial margin is required to open a position; maintenance margin is the minimum level needed to keep it open. Cross and isolated margin modes allocate collateral differently, and venue rules determine how losses and fees affect available margin.
Example
A trader opening a futures position may need to allocate a portion of account equity as initial margin before the order is accepted.
Educational information only. Trading terms and contract mechanics can vary by venue and market. Verify the rules of the provider you use.