Futures trading brokers account requirements
Please email webmaster unitedfutures. Or you may be asked for additional margin if the exchange or your brokerage firm raises its margin requirements. Past performance is not necessarily indicative of future results and the risk of loss does exist in futures trading. It is much like money held in an escrow account.
United Futures Trading Company, Inc. Requests for additional margin are known as margin calls. All trading rates quoted per side. If and when the funds remaining in your account futures trading brokers account requirements reduced by losses to below a certain level—known as the maintenance margin level—your broker will require that you deposit additional funds to bring the balance back to the level of the initial margin.
Initial margin and Maintenance margin. It is much like money held in an escrow account. This publication is the property of the National Futures Association.
Open An Account Now Online! Return to table of contents As is apparent from the preceding discussion, the arithmetic of leverage is the arithmetic of margins. Individual firms may have margin requirements higher than the exchange minimums.
Initial margin sometimes called original margin is the sum of money that you must deposit at the outset with the brokerage firm for each futures contract to be bought or sold. It is much like money held in an escrow account. Open An Futures trading brokers account requirements Now Online! But used in connection with futures trading, margin has an altogether different meaning and serves an altogether different purpose.