What Is Initial Margin?
The amount of money a trader must deposit with a broker to open a futures position, acting as a performance bond rather than a down payment on the contract's value.
Initial Margin across 2 exams
Initial Margin appears on the following exams. Each defines it in the context candidates are tested on:
- Series 3
- The amount of money a trader must deposit with a broker to open a futures position, acting as a performance bond rather than a down payment on the contract's value.
- Series 9/10
- The minimum amount of equity a customer must deposit to purchase or short sell securities on margin, set by the Federal Reserve under Regulation T. Supervisors verify that accounts meet the initial margin requirement before trades are executed.