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(Created page with "The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of in...")
 
 
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#Initial margin is the total amount of margin per contract required by the broker when a futures position is opened;  
 
#Initial margin is the total amount of margin per contract required by the broker when a futures position is opened;  
 
#maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer’s account drops to, or under, the level because of adverse price movement, the broker must issue a [[margin call]] to restore the customer’s equity. Sometimes called a performance bond.  
 
#maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer’s account drops to, or under, the level because of adverse price movement, the broker must issue a [[margin call]] to restore the customer’s equity. Sometimes called a performance bond.  
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[[Category: Agriculture]]
 
[[Category: Agriculture]]

Latest revision as of 13:26, 23 October 2019

The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring against loss on open futures contracts. The margin is not partial payment on a purchase.

  1. Initial margin is the total amount of margin per contract required by the broker when a futures position is opened;
  2. maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer’s account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customer’s equity. Sometimes called a performance bond.

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